[Federal Register Volume 73, Number 30 (Wednesday, February 13, 2008)]
[Proposed Rules]
[Pages 8508-8535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2412]



[[Page 8507]]

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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 2008; Proposed Rule

  Federal Register / Vol. 73, No. 30 / Wednesday, February 13, 2008 / 
Proposed Rules  

[[Page 8508]]


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NUCLEAR REGULATORY COMMISSION

10 CFR Parts 170 and 171

RIN 3150-AI28


Revision of Fee Schedules; Fee Recovery for FY 2008

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) 2008, less the amounts appropriated from 
the Nuclear Waste Fund (NWF), amounts appropriated for Waste Incidental 
to Reprocessing (WIR), and amounts appropriated for generic homeland 
security activities. Based on the Consolidated Appropriations Act, 2008 
(Pub. L. 110-161), signed by the President on December 26, 2007, the 
NRC's required fee recovery amount for the FY 2008 budget is 
approximately $779.1 million. After accounting for carryover and 
billing adjustments, the total amount to be billed as fees is 
approximately $760.7 million.

DATES: The comment period expires March 14, 2008. 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 2008 fees by September 30, 2008, 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-AI28 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) 415-1677. You may also submit comments via 
the Federal eRulemaking Portal at http://www.regulations.gov. Address 
questions about this Web site to Ms. Carol Gallagher, 301-415-5905; e-
mail [email protected].
    Hand deliver comments to: 11555 Rockville Pike, Rockville, 
Maryland, between 7:30 a.m. and 4:15 p.m. Federal workdays. (Telephone 
301-415-1677.)
    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 http://www.regulations.gov.
    To obtain additional information on the NRC's FY 2008 budget 
request, commenters and others may review NUREG-1100, Volume 23, 
``Performance Budget: Fiscal Year 2008'' (February 2007), which 
describes the NRC's budget for FY 2008, including the activities to be 
performed in each program. This document is available on the NRC's 
public Web site at http://www.nrc.gov/reading-rm.html. Note, however, 
that NUREG-1100, Volume 23, is based on the NRC's FY 2008 budget 
request to Congress, and that the fees in this rulemaking are based on 
the NRC appropriation in the Consolidated Appropriations Act, 2008 
(Pub. L. 110-161) which includes an additional approximately $9.5 
million above the NRC's budget request. The allocation of the Public 
Law 110-161 budget to planned activities within each program, and to 
each fee class and surcharge category, is included in the publicly 
available work papers supporting this rulemaking.
    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: Renu Suri, telephone 301-415-0161; 
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

    The NRC is required each year, under OBRA-90, as amended, (42 
U.S.C. 2214) to recover approximately 90 percent of its budget 
authority, less the amounts appropriated from the NWF, amounts 
appropriated for WIR, and amounts appropriated for generic homeland 
security activities (``non-fee items''), through fees to NRC licensees 
and applicants. The NRC receives from the general fund each year, 10 
percent of its budget authority (less non-fee items) to pay for the 
cost of agency activities that do not provide a direct benefit to NRC 
licensees, such as international assistance and Agreement State 
activities under section 274 of the Atomic Energy Act of 1954, as 
amended.
    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 
cost of providing special benefits to identifiable applicants and 
licensees. Examples of the services provided by the NRC for which these 
fees are assessed include the review of applications for new licenses 
and the review of renewal applications, the review of license amendment 
requests, and inspections. Second, annual fees established in 10 CFR 
part 171 under the authority of OBRA-90, as amended, recover generic 
and other regulatory costs not otherwise recovered through 10 CFR part 
170 fees.
    Based on Public Law 110-161, the NRC's required fee recovery amount 
for the FY 2008 budget is approximately $779.1 million, which is 
decreased by approximately $18.4 million to account for billing 
adjustments (i.e. carryover from prior year, expected unpaid invoices, 
payments for prior year invoices), resulting in a total of

[[Page 8509]]

approximately $760.7 million to be billed as fees in FY 2008.
    In accordance with OBRA-90, as amended, $29.4 million of the 
budgeted resources associated with generic homeland security activities 
are excluded from the NRC's fee base in FY 2008. This legislative 
provision was discussed in the NRC's FY 2006 proposed and final fee 
rules (71 FR 7349, February 10, 2006; 71 FR 30721, May 30, 2006). These 
funds cover generic activities that support an entire license fee class 
or classes of licensees such as rulemakings and guidance development. 
Under the authority of 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.
    The amount of the NRC's required fee collections is set by law, and 
is therefore outside the scope of this rulemaking. In FY 2008, the 
NRC's total fee recovery amount increased by $109.8 million from FY 
2007, mostly in response to increased workload for new reactor 
licensing activities. The FY 2008 budget was allocated to the fee 
classes that the budgeted activities support. As such, the proposed 
annual fees for reactor licensees increased. The proposed annual fees 
for most other licensees decreased due to reductions in budgeted 
resources allocated to the fee classes. Another factor affecting the 
amount of annual fees for each fee class is the estimated collection 
under part 170, discussed in the Proposed Action section of this 
document.

II. Proposed Action

    The NRC is proposing to amend its licensing, inspection, and annual 
fees to recover approximately 90 percent of its FY 2008 budget 
authority less the appropriations for non-fee items. The NRC's total 
budget authority for FY 2008 is $926.1 million. The non-fee items 
include approximately $29 million appropriated from the NWF, $2 million 
for WIR activities, and $29.4 million for generic homeland security 
activities. Based on the 90 percent fee-recovery requirement, the NRC 
must recover approximately $779.1 million in FY 2008 through part 170 
licensing and inspection fees and part 171 annual fees. The amount 
required by law to be recovered through fees for FY 2008 is $109.8 
million more than the amount estimated for recovery in FY 2007, an 
increase of approximately 16.4 percent.
    The FY 2008 fee recovery amount decreased by $5 million to account 
for billing adjustments (i.e., for FY 2008 invoices that the NRC 
estimates will not be paid during the fiscal year, less payments 
received in FY 2008 for FY 2007 invoices). The FY 2008 fee recovery 
amount is also reduced by approximately $13.3 million carryover from 
additional collections in FY 2007 that were unanticipated when the 
final FY 2007 fee rule was published. This leaves approximately $760.7 
million to be billed as fees in FY 2008 through part 170 licensing and 
inspection fees and part 171 annual fees.
    Table I summarizes the budget and fee recovery amounts for FY 2008 
(Individual values may not sum to totals due to rounding.)

          Table I.--Budget and Fee Recovery Amounts For FY 2008
                          [Dollars in millions]
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Total Budget Authority.....................................       $926.1
Less non-fee items.........................................        -60.4
                                                            ------------
    Balance................................................       $865.7
    Fee Recovery Rate for FY 2008..........................      x 90.0%
                                                            ------------
        Total Amount to be Recovered for FY 2008...........       $779.1
                                                            ------------
Less Carryover from FY 2007................................        -13.3
Less Part 171 Billing Adjustments:
    Unpaid FY 2008 Invoices (estimated)....................          2.7
    Less Payments Received in FY 2008 for Prior Year                -7.8
     Invoices (estimated)..................................
                                                            ------------
        Subtotal...........................................        -18.4
                                                            ------------
Amount to be Recovered Through Parts 170 and 171 Fees......       $760.7
Less Estimated Part 170 Fees...............................       -283.5
                                                            ------------
    Part 171 Fee Collections Required......................       $477.2
------------------------------------------------------------------------

    Approximately 76 percent of the $13.3 million carryover amount was 
for unpredicted FY 2007 part 170 revenues for licensing and inspection 
services. At the time the FY 2007 final fee rule was published, NRC 
estimated the part 170 revenues based on billings for the prior four 
quarters. The rate of actual billings and revenues for the remainder of 
FY 2007 was higher than expected. Some of the factors contributing to 
the greater than estimated part 170 revenue collections were higher 
billings for review of design certifications and pre-application 
interactions related to new reactors, and materials licensing reviews 
billed to government agencies for the first time. In August 2007, NRC 
began billing government agencies in accordance with the Energy Policy 
Act of 2005 (also see 71 FR 30731; May 30, 2006, for more discussion). 
The remainder of the $13.3 million carryover amount resulted from 
higher annual fees collected in FY 2007. Some of the factors for the 
higher collections were timing of the effective date of the FY 2007 fee 
rule, and collections for prior years. The FY 2007 fee rule went into 
effect August 6, 2007 with reduced fee amounts for most of the 
materials licensees. A majority of these licensees paid their fees on 
their anniversary month during FY 2007, based on the FY 2006 fee 
schedule (which had higher fees). This resulted in higher fee 
collections in FY 2007. NRC also collected greater than expected annual 
fees due to billings for prior years which were identified in FY 2007.
    For FY 2008, the $13.3 million carryover amount will offset the 
fees statutorily required to be collected resulting in reductions in 
the annual fee for all fee classes. In addition, part 170 revenue 
estimates have been adjusted to reflect the current rate of billings to 
licensees.
    The NRC estimates that in FY 2008 approximately $283.5 million will 
be recovered from part 170 fees. This

[[Page 8510]]

represents an increase of approximately 33 percent as compared to the 
actual part 170 collections of $213.7 million for FY 2007. The NRC 
derived the FY 2008 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 2008 budget, as 
appropriate. The remaining $477.2 million will be recovered through the 
part 171 annual fees in FY 2008, compared to $465.3 million for FY 
2007, an increase of approximately 2.6 percent.
    The FY 2008 final fee rule will be a ``major rule'' as defined by 
the Congressional Review Act of 1996, 5 U.S.C. 801-808. Therefore, the 
NRC's fee schedules for FY 2008 will become effective 60 days after 
publication of the final rule in the Federal Register. The NRC will 
send an invoice for the amount of the annual fee to reactors, part 72 
licensees, major fuel cycle facilities, and other licensees with annual 
fees of $100,000 or more, upon publication of the FY 2008 final rule. 
For these licensees, payment is due on the effective date of the FY 
2008 final rule. Because these licensees are billed quarterly, the 
payment due is the amount of the total FY 2008 annual fee, less 
payments made in the first three quarters of the fiscal year.
    Materials licensees with annual fees of less than $100,000 are 
billed annually. Those materials licensees whose license anniversary 
date during FY 2008 falls before the effective date of the FY 2008 
final rule will be billed for the annual fee during the anniversary 
month of the license at the FY 2007 annual fee rate. Those materials 
licensees whose license anniversary date falls on or after the 
effective date of the FY 2008 final rule will be billed for the annual 
fee at the FY 2008 annual fee rate during the anniversary month of the 
license, and payment will 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 2008 final fee rule or future final 
fee rules to licensees.
    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 2008. In addition to 
publication in the Federal Register, the final rule will be available 
on the Internet at regulations.gov.
    The NRC is proposing to amend 10 CFR parts 170 and 171 as discussed 
in Sections II.A and II.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 FY 2007 fee rule established one hourly rate to recover the 
full cost of activities under part 170, and to use this rate to 
calculate ``flat'' application fees. The change from using two hourly 
rates to one hourly rate was discussed in the NRC's FY 2007 proposed 
and final fee rules (72 FR 5110, February 2, 2007; 72 FR 31405, June 6, 
2007).
    The NRC is proposing the following changes:
1. Hourly Rate
    The NRC's hourly rate is used in assessing full cost fees for 
specific services provided, as well as flat fees for certain 
application reviews. The NRC is proposing to change the FY 2008 hourly 
rate to $238. This rate would be applicable to all activities for which 
fees are assessed under Sec.  Sec.  170.21 and 170.31. The FY 2008 
proposed hourly rate is lower than the hourly rate of $258 in the FY 
2007 final fee rule primarily due to the revised higher estimate of 
direct hours per FTE used in the hourly calculation. The hourly rate 
calculation is described in further detail in the following paragraphs.
    The NRC's single hourly rate is derived by dividing the sum of 
recoverable budgeted resources for (1) mission direct program salaries 
and benefits; (2) mission indirect salaries and benefits and contract 
activity; and (3) agency management and support and IG, by mission 
direct FTE hours. The only budgeted resources excluded from the hourly 
rate are those for mission direct contract activities. Although the 
numerator, i.e. net recoverable budget excluding contract activities, 
increased by 11 percent as compared with FY 2007, it is lower than the 
rate of increase in the denominator, i.e. mission direct FTE hours, 
which increased by 21 percent. This resulted in a lower hourly rate for 
FY 2008 as compared with FY 2007. The increase in the mission direct 
FTE hours in FY 2008 compared with FY 2007 is due to the revised higher 
estimate of direct hours per FTE (1,371 hours vs. 1,287 hours) and 
increase in direct FTEs (2,079 FTE vs. 1,835 FTE).
    The NRC has reviewed data from its time and labor system to 
determine if the direct hours worked annually per direct FTE estimate 
requires updating for the FY 2008 fee rule. Based on this review of the 
most recent data available, the NRC determined that 1,371 hours is the 
best estimate of direct hours worked annually per direct FTE. This 
estimate excludes all non-mission direct hours, such as training, 
general administration, and leave. Because the NRC's hourly rates are 
calculated by dividing net recoverable budget (excluding contract 
activities) by the product of budgeted mission direct FTE and annual 
direct hours per FTE, the higher the number of direct hours per FTE 
used in the calculation, the lower the hourly rates.
    The NRC is proposing to update its hourly rate calculation to 
reflect its latest estimate of direct hours per FTE to more accurately 
reflect the NRC's cost of providing part 170 services, which would 
allow the NRC to more fully recover the cost of these services through 
part 170 fees. The NRC believes that this is consistent with guidance 
provided in the Office of Management and Budget Circular A-25 on 
recovering the full cost of services provided to identifiable 
recipients. The resulting lower hourly rate would result in both 
decreased full cost fees for licensing and inspection activities, and 
decreased materials flat fees for license applications.
    Table II shows the results of the hourly rate calculation 
methodology. (Individual values may not sum to totals due to rounding.)

[[Page 8511]]



               Table II.--FY 2008 Hourly Rate Calculation
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Mission Direct Program Salaries & Benefits.................      $292.6M
Mission Indirect Salaries & Benefits, and Contract Activity       120.7M
Agency Management and Support, and IG......................       266.2M
                                                            ------------
    Subtotal...............................................      $679.5M
Less Offsetting Receipts...................................        -0.0M
                                                            ------------
    Total Budget Included in Hourly Rate...................      $679.5M
Mission Direct FTEs........................................        2,079
Professional Hourly Rate (Total Budget Included in Hourly           $238
 Rate divided by Mission Direct FTE times 1,371 hours).....
------------------------------------------------------------------------

    As shown in Table II, dividing the $679.5 million budgeted amount 
(rounded) included in the hourly rate by total mission direct hours 
(2,079 FTE times 1,371 hours) results in an hourly rate of $238. The 
hourly rate is rounded to the nearest whole dollar.
2. ``Flat'' Application Fee Changes
    The NRC is proposing to adjust the current flat application fees in 
Sec. Sec.  170.21 and 170.31 to reflect the revised hourly rate of 
$238. These flat fees are calculated by multiplying the average 
professional staff hours needed to process the licensing actions by the 
proposed professional hourly rate for FY 2008. 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. This review 
was last performed as part of the FY 2007 fee rulemaking. The lower 
hourly rate of $238 is the main reason for the reduction in the 
application fees.
    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.S., 4.B. through 9.D., 10.B, 15.A. through 15.R., 
16, and 17 of Sec.  170.31. Applications filed on or after the 
effective date of the FY 2008 final fee rule would be subject to the 
revised fees in the final rule.
3. Administrative Amendments
    The NRC is adding program codes next to the materials users fee 
categories in Sec.  170.31. When NRC receives a materials users license 
application, a five-digit program code number is assigned by the agency 
to each license to designate the major activity or principal use 
authorized in the license. More than one code may apply to a given 
license. The fee amount for the license under the 10 CFR parts 170 and 
171 is determined by the fee category which is also based on the 
authorized usage described on the license. To reduce the risk of 
misinterpretation of material uses authorized in the license while 
establishing a fee category, the NRC is implementing a process that 
links a program code directly to a fee category. Once a program code is 
assigned to the license, it will assist the licensee to correctly 
identify the fee amount(s) by looking up the program code(s) in Sec.  
170.31.
    In summary, the NRC is proposing to make the following changes to 
10 CFR part 170:
    1. Establish revised professional hourly rate to use in assessing 
fees for specific services;
    2. Revise the license application fees to reflect the proposed FY 
2008 hourly rate; and
    3. Make certain administrative changes for purposes of 
clarification.

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 use its fee relief to reduce all licensees' 
annual fees and make changes to the number of NRC licensees. This 
rulemaking also proposes to establish rebaselined annual fees based on 
the NRC's FY 2008 budget in Public Law 110-161. The proposed amendments 
are described as follows:
1. Application of ``Fee Relief''
    The NRC is proposing to use its fee relief to reduce all licensees' 
annual fees, based on their percent of the budget.
    The NRC applies the 10 percent of its budget that is excluded from 
fee recovery under OBRA-90, as amended (fee relief), to offset the cost 
of activities which do not directly benefit current NRC licensees. The 
cost of these ``surcharge'' activities are totaled, and then reduced by 
the amount of the NRC's fee relief. Historically, any remaining 
surcharge cost was allocated to all licensees' annual fees, based on 
their percent of the budget (i.e., over 80 percent was allocated to 
power reactors each year).
    In FY 2008, the NRC's fee relief exceeds the total surcharge cost 
by approximately $7.5 million. In FY 2007, this fee relief exceeded the 
total cost by approximately $9.8 million. The fee relief in FY 2008 is 
lower compared with FY 2007 primarily due to higher FY 2008 surcharge 
cost which includes funding of $15 million for scholarships and 
fellowships. The scholarships and fellowships funding, to be 
administered by the NRC, is to enable students to pursue education in 
fields of study that constitute critical skills areas needed to sustain 
NRC's regulatory mission and benefit the nuclear sector. This $15 
million funding for scholarships and fellowships does not directly 
benefit the existing NRC licensees. Therefore, the NRC has classified 
it as a surcharge activity to be offset by the fee relief.
    As in FY 2007, the NRC is using the $7.5 million fee relief to 
reduce all licensees' annual fees, based on their percent of the fee 
recoverable budget authority. This is consistent with the existing fee 
methodology, in that the benefits of the NRC's fee relief are allocated 
to licensees in the same manner as cost was allocated when the NRC did 
not receive enough fee relief to pay for surcharge activities. In FY 
2008, the power reactors class of licensees will receive approximately 
90 percent of the fee relief based on their share of the NRC fee 
recoverable budget authority.
    The total budgeted resources for the NRC's surcharge activities in 
FY 2008 are $79.1 million. The NRC's total fee relief in FY 2008 is 
$86.6 million, leaving $7.5 million in fee relief to be used to reduce 
all licensees' annual fees. These values are shown in Table III 
(Individual values may not sum to totals due to rounding.)

[[Page 8512]]



                       Table III.--Surcharge Costs
                          [Dollars in millions]
------------------------------------------------------------------------
                                                               FY 2008
                     Category of costs                         budgeted
                                                                costs
------------------------------------------------------------------------
1. Activities not attributable to an existing NRC licensee
 or class of licensee:
    a. International activities............................        $12.9
    b. Agreement State oversight...........................          8.8
    c. Scholarships and Fellowships........................         15.0
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         10.9
    b. Costs not recovered from small entities under 10 CFR          3.8
     171.16(c).............................................
3. Activities supporting NRC operating licensees and
 others:
    a. Regulatory support to Agreement States..............          9.9
    b. Generic decommissioning/reclamation (not related to          14.7
     the power reactor and spent fuel storage fee classes).
    c. ISL rulemaking and unregistered general licensees...          3.1
                                                            ------------
        Total surcharge costs..............................         79.1
Less 10 percent of NRC's FY 2008 total budget (less NWF,           -86.6
 WIR, and generic homeland security activities)............
                                                            ------------
        Fee Relief to be Allocated to All Licensees' Annual         -7.5
         Fees..............................................
------------------------------------------------------------------------

    Table IV shows how the NRC is allocating the $7.5 million in fee 
relief to each license fee class (Individual amounts may not sum to 
totals due to rounding.) As explained previously, the NRC is allocating 
this fee relief to each license fee class based on the percent of the 
budget for that fee class compared to the NRC's total budget. The fee 
relief is used to partially offset the required annual fee recovery 
from each fee class. Sections 171.15(d)(1) and 171.16(e) clarify that 
the surcharge allocated to annual fees may be negative (i.e., an annual 
fee reduction).
    Separately, the NRC has continued to allocate the low level waste 
(LLW) surcharge costs based on the volume of LLW disposal of certain 
classes of licenses. Table IV also shows the allocation of the LLW 
surcharge. Because LLW activities support NRC licensees, the costs of 
these activities are not offset by the NRC's fee relief. For FY 2008, 
the LLW surcharge cost is $2.8 million. The annual fee for the 
materials users fee class includes a surcharge because the LLW 
surcharge allocated to the fee class is greater than its allocated fee 
relief.

                              Table IV.--Allocation of Fee Relief and LLW Surcharge
----------------------------------------------------------------------------------------------------------------
                                                               LLW surcharge       Non-LLW surcharge     Total
                                                          ----------------------    (fee reduction)   ----------
                                                                                ----------------------
                                                            Percent       $M      Percent       $M         $M
----------------------------------------------------------------------------------------------------------------
Operating Power Reactors.................................         74        2.1       89.7       -6.7       -4.6
Spent Fuel Storage/Reactor Decommissioning...............  .........  .........        2.9       -0.2       -0.2
Test and Research Reactors...............................  .........  .........        0.1        0.0        0.0
Fuel Facilities..........................................          8        0.2        4.1       -0.3       -0.1
Materials Users..........................................         18        0.5        2.6       -0.2        0.3
Transportation...........................................  .........  .........        0.3        0.0        0.0
Rare Earth Facilities....................................  .........  .........        0.0        0.0        0.0
Uranium Recovery.........................................  .........  .........        0.3        0.0        0.0
                                                          ------------------------------------------------------
    Total Surcharge......................................        100        2.8      100.0       -7.5       -4.7
----------------------------------------------------------------------------------------------------------------

2. Agreement State Activities
    By letter dated November 9, 2006, Governor Edward Rendell of the 
Commonwealth of Pennsylvania 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 final Agreement package is before 
the Commission for approval and the Agreement is expected to take 
effect by March 31, 2008. This will result in the transfer of 
approximately 650 licenses from the NRC to the Commonwealth of 
Pennsylvania.
    Note that the continuing costs of Agreement State regulatory 
support and oversight for the Commonwealth of Pennsylvania, as for any 
other Agreement State, are recovered through the surcharge (as reduced 
by the 10 percent of its budget that the NRC receives in appropriations 
each year for these types of activities), consistent with existing 
policy. The budgeted resources for the regulatory infrastructure to 
support these types of licensees are prorated to the surcharge based on 
the percent of total licensees in Agreement States. The NRC proposes to 
update the allocation percentage in its fee calculation to make sure 
that resources are allocated equitably between the NRC materials users 
fee class and the Agreement States surcharge category. Accordingly, in 
anticipation of the Commonwealth of Pennsylvania becoming an Agreement 
State, the NRC has increased the percentage of materials users 
regulatory infrastructure costs prorated to the surcharge category from 
80 percent in FY 2007 to 82 percent in FY 2008. However, some resources 
associated with the materials users fee class are not prorated to the 
surcharge (e.g., resources for licensing and inspection activities), 
because these

[[Page 8513]]

resources are for the purpose of supporting NRC licensees only.
    The number of NRC materials users licensees also has been updated 
to reflect the transfer of licensees to the Commonwealth of 
Pennsylvania that is expected to take place effective March 31, 2008. 
Because of the effective date of March 31, 2008, the approximately 650 
licensees transferring to the Commonwealth of Pennsylvania will be 
subject to one-half of their annual fee for FY 2008. The number of 
materials users licensees were revised to reflect that NRC will still 
collect one-half of the annual fee from these licensees. Also, the 
single NRC rare earth licensee under fee category 2.A.(2)(c) will 
transfer to the Commonwealth of Pennsylvania. Because no other rare 
earth facility application is expected for FY 2008, an annual fee was 
not computed for fee category 2.A.(2)(c). As with other licensees 
transferring to the Commonwealth of Pennsylvania, in FY 2008, this rare 
earth facility will pay one-half of the annual fee in effect on its 
anniversary date in January 2008.
    This is not a substantive policy change, but rather a calculation 
change that will result in a more accurate estimate of the actual costs 
of Agreement State oversight activities. If the Commonwealth of 
Pennsylvania does not become an Agreement State by the publication of 
the final fee rule, the NRC will adjust the calculation of the FY 2008 
annual fees based on the latest information available at that time. Any 
changes will be discussed in the final fee rule.
3. Revised Annual Fees
    The NRC is proposing to revise its annual fees in Sec. Sec.  171.15 
and 171.16 for FY 2008 to recover approximately 90 percent of the NRC's 
FY 2008 budget authority less the non-fee amounts and the estimated 
amount to be recovered through part 170 fees. The part 170 estimate for 
this proposed rule increased by $78.4 million from the FY 2007 fee rule 
based on the latest invoice data available. The total amount to be 
recovered through annual fees for FY 2008 is $477.2 million. The 
required annual fee collection in FY 2007 was $465.3 million.
    The NRC uses one of two methods to determine the amounts of the 
annual fees, for each type of licensee, 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.
    As explained in the FY 2006 final fee rule (71 FR 30733; May 30, 
2006), the Commission has determined that the agency should proceed 
with a presumption in favor of rebaselining in calculating annual fees 
each year, and that the percent change method should be used 
infrequently. This is because the Commission expects that most years 
there will be budget and other changes that warrant the use of the 
rebaselining method.
    Rebaselining fees results in increased annual fees compared with FY 
2007 for two classes of licensees (power reactors and non-power 
reactors), and decreased annual fees for four classes of licensees 
(spent fuel storage/reactor decommissioning, fuel facilities, materials 
users, and transportation). Within the uranium recovery fee class, 
annual fees for the all the non DOE licensees decrease, while annual 
fee for the DOE increases slightly. There is no annual fee for the rare 
earth fee class because this NRC fee class will no longer exist in FY 
2008. As discussed in Section II.B.2 of this document, ``Agreement 
State Activities'', NRC's only rare earth facility will transfer to the 
Commonwealth of Pennsylvania when it becomes an Agreement State, 
expected to be effective March 31, 2008. In FY 2008, this rare earth 
facility will pay one-half of the annual fee in effect on its 
anniversary date.
    The significant factors affecting the changes to the annual fee 
amounts as compared with FY 2007 are the increase in budgeted resources 
for new reactor activities, higher part 170 revenue estimate, and 
adjustment for higher prior year fee collections. The NRC's total fee 
recoverable budget, as mandated by law, is approximately $109.8 million 
larger in FY 2008 as compared with FY 2007. Because much of this 
increase is for the additional workload demand in the area of new 
reactor licensing, this increase mainly affects the operating power 
reactors' annual fees. Other factors affecting all annual fees include 
the distribution of budgeted costs to the different classes of licenses 
(based on the specific activities NRC will perform in FY 2008), the 
estimated part 170 collections for the various classes of licenses, and 
allocation of the fee relief to all fee classes. The percentage of the 
NRC's budget not subject to fee recovery remained unchanged at 10 
percent from FY 2007 to FY 2008.
    Table V shows the rebaselined annual fees for FY 2008 for a 
representative list of categories of licenses. The FY 2007 fee is also 
shown for comparative purposes.

              Table V.--Rebaselined Annual Fees for FY 2008
------------------------------------------------------------------------
                                              FY 2007         FY 2008
       Class/category of licenses           annual fee      annual fee
------------------------------------------------------------------------
Operating Power Reactors (including           $4,043,000      $4,237,000
 Spent Fuel Storage/Reactor
 Decommissioning annual fee)............
Spent Fuel Storage/Reactor                       159,000         140,000
 Decommissioning........................
Test and Research Reactors (Non-power             76,300          77,400
 Reactors)..............................
High Enriched Uranium Fuel Facility.....       4,096,000       3,082,000
Low Enriched Uranium Fuel Facility......       1,237,000         921,000
UF6 Conversion Facility.................         811,000         604,000
Conventional Mills......................          18,700          10,900
Typical Materials Users:
    Radiographers.......................          14,100          11,200
    Well Loggers........................           4,400           3,400
    Gauge Users (Category 3P)...........           2,700           2,100
    Broad Scope Medical.................          29,000          23,000
------------------------------------------------------------------------

    The budgeted costs allocated to each class of licenses and the 
calculations of the rebaselined fees are described in paragraphs a. 
through h. of this Section. The work papers which support this proposed 
rule show in detail the

[[Page 8514]]

allocation of NRC's budgeted resources for each class of licenses and 
how the fees are calculated. The reports included in these work papers 
summarize the FY 2008 budgeted FTE and contract dollars allocated to 
each fee class and surcharge category at the planned activity and 
program level, and compare these allocations to those used to develop 
final FY 2007 fees. In FY 2008, NRC has also revised the format of the 
work papers to make it easier for stakeholders to find the information 
supporting this proposed fee rule. The sequence of the information in 
the work papers now matches the sequence in the proposed fee rule. In 
addition, a brief overview of each of the tabs in the work papers has 
been added for the reader's convenience. The work papers 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. The work 
papers may also be examined at the NRC PDR located at One White Flint 
North, Room O-1F22, 11555 Rockville Pike, Rockville, Maryland.
a. Fuel Facilities.
    The FY 2008 budgeted cost to be recovered in the annual fees 
assessment to the fuel facility class of licenses [which includes 
licensees in fee categories 1.A.(1)(a), 1.A.(1)(b), 1.A.(2)(a), 
1.A.(2)(b), 1.A.(2)(c), 1.E., and 2.A.(1), under Sec.  171.16] is 
approximately $14.2 million. This value is 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 fee relief (negative surcharge), allocated 
generic transportation resources, and carryover. The summary 
calculations used to derive this value are presented in Table VI for FY 
2008, with FY 2007 values shown for comparison (Individual values may 
not sum to totals due to rounding.)

     Table VI.--Annual Fee Summary Calculations for Fuel Facilities
                          [Dollars in millions]
------------------------------------------------------------------------
                                                              FY 2008
        Summary fee calculations          FY 2007  final     proposed
------------------------------------------------------------------------
Total budgeted resources................           $32.2           $31.5
Less estimated part 170 receipts........           -13.6           -17.0
    Net part 171 resources..............            18.6            14.5
                                         -------------------------------
Allocated generic transportation........           + 0.5           + 0.6
Allocated surcharge.....................            -0.2            -0.1
Billing adjustments (including                     + 0.1            -0.8
 carryover).............................
                                         -------------------------------
    Total required annual fee recovery..            18.9            14.2
------------------------------------------------------------------------

    The decrease in fuel facilities FY 2008 total budgeted resources 
allocated to this fee class compared with FY 2007 is due to lower fuel 
facility resources for licensing activities, higher part 170 revenue 
estimate, and adjustment for higher carryover. The part 170 revenue 
estimate for FY 2008 increased by 25 percent compared with FY 2007 due 
to increased billing for fuel facilities. This results in lower FY 2008 
annual fees for fuel facilities in this fee rule.
    The total required annual fee recovery amount is allocated to the 
individual fuel facility licensees based on the effort/fee 
determination matrix developed for the FY 1999 final fee rule (64 FR 
31447; June 10, 1999). In the matrix included in the NRC publicly 
available work papers, 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 (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. Second, 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 work papers for the complete list). Effort factors are 
assigned as follows: one (low regulatory effort), five (moderate 
regulatory effort), and ten (high regulatory effort). These effort 
factors are then totaled for each fee category, so that each fee 
category has a total effort factor for safety activities and a total 
effort factor for safeguards activities.
    The 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,

[[Page 8515]]

reflects the total regulatory effort for each fee category (not per 
facility). Note that the effort factors for the High Enriched Uranium 
Fuel fee category have changed from FY 2007. The safety and safeguards 
factors increased in FY 2008 to reflect NRC's review of an amendment 
request by a licensee to handle liquid UF6 workload. Taking 
into account both of these changes, the total safety and safeguards 
effort factor change is relatively small.

             Table VII.--Effort Factors for Fuel Facilities
------------------------------------------------------------------------
                                                Effort factors  (percent
                                    Number of           of total)
   Facility type (fee category)     facilities -------------------------
                                                   Safety     Safeguards
------------------------------------------------------------------------
High Enriched Uranium Fuel.......            2    92 (35.8)   102 (53.7)
Uranium Enrichment...............            2    70 (27.2)    40 (21.1)
Low Enriched Uranium Fuel........            3    66 (25.7)    21 (11.1)
UF6 Conversion...................            1     12 (4.7)      7 (3.7)
Limited Operations...............            1      8 (3.1)      3 (1.6)
Gas Centrifuge Enrichment                    1      3 (1.2)     15 (7.9)
 Demonstration...................
Hot Cell.........................            1      6 (2.3)      2 (1.1)
------------------------------------------------------------------------

    The budgeted resources for safety activities ($8,211,592) are 
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 10, that fee category will be allocated 10 percent of the total 
budgeted resources for safety activities. Similarly, the budgeted 
resources for safeguards activities ($6,070,827) are allocated to each 
fee category based on its percent of the total regulatory effort for 
safeguards activities. The fuel facility fee class' portion of the fee 
relief (negative surcharge of $81,517) and the billing adjustment (a 
fee reduction in FY 2008 of $755,676) is allocated to each fee category 
based on its percent of the total regulatory effort for both safety and 
safeguards activities. The annual fee per licensee is then calculated 
by dividing the total allocated budgeted resources for the fee category 
by the number of licensees in that fee category as summarized in Table 
VIII.

              Table VIII.--Annual Fees for Fuel Facilities
------------------------------------------------------------------------
                                                        FY 2008  annual
             Facility type (fee category)                     fee
------------------------------------------------------------------------
High Enriched Uranium Fuel...........................         $3,082,000
Uranium Enrichment...................................          1,747,000
Low Enriched Uranium.................................            921,000
UF6 Conversion.......................................            604,000
Gas Centrifuge Enrichment Demonstration..............            572,000
Limited Operations Facility..........................            349,000
Hot Cell (and others)................................            254,000
------------------------------------------------------------------------

    The NRC does not expect to authorize operation of any new uranium 
enrichment facility in FY 2008. The annual fee applicable to any type 
of new uranium enrichment facility is the annual fee in Sec.  171.16, 
fee category 1.E., Uranium Enrichment, unless the NRC establishes a new 
fee category for the facility in a subsequent rulemaking.
b. Uranium Recovery Facilities
    The total FY 2008 budgeted cost to be recovered through annual fees 
assessed to the uranium recovery class [which includes licensees in fee 
categories 2.A.(2)(a), 2.A.(2)(b), 2.A.(3), 2.A.(4), 2.A.(5) and 18.B., 
under Sec.  171.16], is approximately $0.66 million. The derivation of 
this value is shown in Table IX, with FY 2007 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]
------------------------------------------------------------------------
                                                  FY 2007      FY 2008
           Summary fee calculations                final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $1.32        $1.65
Less estimated part 170 receipts..............        -0.61        -0.94
    Net part 171 resources....................         0.71         0.71
                                               -------------------------
Allocated generic transportation..............        + N/A        + N/A
Allocated surcharge...........................        -0.02        -0.02
Billing adjustments (including carryover).....        +0.00        -0.04
                                               -------------------------
    Total required annual fee recovery........         0.69         0.66
------------------------------------------------------------------------


[[Page 8516]]

    The decrease in the total required annual fee recovery is mainly 
due to higher part 170 revenue estimates compared with FY 2007 
partially offset by an increase in uranium recovery licensing and 
inspection resources. The budget resources increased to support 
licensing work for new uranium recovery facilities and to improve 
regulatory framework for in-situ leach (ISL) facilities. In FY 2008, 
more of the total resources, surcharge, and the billing for this fee 
class were allocated to the non-Department of Energy (DOE) licensees, 
as discussed further in this document. This change in the distribution 
of uranium recovery fee class resources between non-DOE uranium 
recovery facilities and DOE resulted in an increase in annual fee for 
the DOE compared to the decrease in annual fee for non-DOE facilities.
    Of the required annual fee collections, $596,000 (rounded) is 
assessed to DOE's Uranium Mill Tailings Radiation Control Act (UMTRCA) 
under fee category 18.B. The remaining $61,000 (rounded) will be 
recovered through annual fees assessed to the other licensees in this 
fee class (i.e., conventional mills, in-situ leach solution mining 
facilities), 11e.(2) mill tailings disposal facilities (incidental to 
existing tailings sites), and a uranium water treatment facility.
    In the FY 2002 final fee rule (67 FR 42611; June 24, 2002), the NRC 
developed a fee recovery methodology for the uranium recovery fee class 
that would allocate the total annual fee amount for this fee class, 
less the amounts specifically budgeted for Title I activities, equally 
between DOE (for its UMTRCA Title I and Title II licensees) and the 
other licensees in this fee class. In the FY 2007 final rule (72 FR 
31414; June 6, 2007), the NRC changed this methodology to allocate 45 
percent of the total annual fee amount, less the amounts specifically 
budgeted for Title I activities, to DOE's UMTRCA annual fee and 55 
percent to the other licensees in this fee class. Based on updated 
information, NRC is changing this allocation percentage in FY 2008. In 
FY 2008, 40 percent of the total annual fee amount of $672,970, less 
$555,546 specifically budgeted for Title I activities, is allocated to 
DOE's UMTRCA facilities. The remaining 60 percent of the total annual 
fee (less the amounts specifically budgeted for Title I activities) is 
allocated to other licensees. The reduction in resources for licensing 
the DOE is based on the reduced effort expended for DOE UMTRCA.
    This results in an annual fee being assessed to DOE to recover the 
costs specifically budgeted for NRC's Title I activities plus 40 
percent of the remaining annual fee amount, including the surcharge and 
generic/other costs, for the uranium recovery class. The remaining 60 
percent of the surcharge and generic/other costs are assessed to the 
other NRC licensees in this fee class 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 UMTRCA) Title I and Title II
 general licenses:
    UMTRCA Title I budgeted costs....................           $555,546
    40 percent of generic/other uranium recovery                  46,970
     budgeted costs..................................
    40 percent of uranium recovery surcharge.........             -6,280
                                                      ------------------
        Total Annual Fee Amount for DOE (rounded)....           $596,000
Annual Fee Amount for Other Uranium Recovery
 Licenses:
    60 percent of generic/other uranium recovery                  70,454
     budgeted costs less the amounts specifically
     budgeted for Title I activities.................
    60 percent of uranium recovery surcharge.........             -9,420
                                                      ------------------
        Total Annual Fee Amount for Other Uranium                 61,034
         Recovery Licenses...........................
------------------------------------------------------------------------

    The NRC will continue to use a matrix (which is included in the 
supporting work papers) to determine the level of effort associated 
with regulating the different (non-DOE) licensees in this fee class. 
The weights derived in this matrix are used to allocate the 
approximately $61,000 annual fee amount to these licensees. The use of 
this uranium recovery annual fee matrix was established in the FY 1995 
final fee rule (60 FR 32217; June 20, 1995). The FY 2008 matrix is 
described as follows.
    First, the methodology identifies the categories of licenses 
included in this fee class (besides DOE). In FY 2008, these categories 
are conventional uranium mills (Class I facilities), uranium solution 
mining facilities (Class II facilities), mill tailings disposal 
facilities (11e.(2) disposal facilities), and uranium water treatment 
facilities. The uranium water treatment facility fee category in the 
uranium recovery fee class was created in FY 2007 (72 FR 31413; June 6, 
2007).
    Second, the matrix identifies the types of operating activities 
that support these licensees. In FY 2008, the activities related to 
generic decommissioning/reclamation are not included in the matrix, 
because generic decommissioning/reclamation activities are included in 
the surcharge, and therefore need not be a factor in determining annual 
fees. The activities included in the FY 2008 matrix are `operations,' 
`waste operations,' and `groundwater remediation.' The relative weight 
of each type of activity is then determined, based on the regulatory 
resources associated with each activity. The `operations,' `waste 
operations,' and `groundwater remediation' activities have weights of 
10, 5, and 10, respectively, in the FY 2008 matrix.
    Once the structure of the matrix is established, the NRC's uranium 
recovery project managers and regulatory analysts determine the level 
of effort associated with regulating each of these facilities. This is 
done by assigning, for each fee category, separate effort factors for 
each type of regulatory activity in the matrix. Effort factors are 
assigned as follows: one (low regulatory effort), five (moderate 
regulatory effort), and ten (high regulatory effort). These effort 
factors are first multiplied by the relative weight assigned to each 
activity (described previously). Total effort factors by fee category, 
and per licensee in each fee category, are then calculated. These 
effort factors thus reflect the relative regulatory effort associated 
with each licensee and fee category.
    The effort factors per licensee and per fee category, for each of 
the non-DOE fee categories included in the uranium recovery fee class, 
are as follows:

[[Page 8517]]



                             Table XI.--Effort Factors for Uranium Recovery Licenses
----------------------------------------------------------------------------------------------------------------
                                                                                     Total effort factor
            Fee Category                  Number of        Effort factor   -------------------------------------
                                          licensees         per licensee           Value         Percent total
----------------------------------------------------------------------------------------------------------------
Class I (conventional mills)........                  1                 75                 75                 18
Class II (solution mining)..........                  3                 75                225                 54
11e.(2) disposal incidental to                        1                 75                 75                 18
 existing tailings sites............
Uranium water treatment.............                  1                 45                 45                 11
----------------------------------------------------------------------------------------------------------------

    The annual fee per licensee is calculated by dividing the total 
allocated budgeted resources for the fee category by the number of 
licensees in that fee category as summarized in Table XII. Applying 
these factors to the approximately $61,000 in budgeted costs to be 
recovered from non-DOE uranium recovery licensees results in the 
following annual fees for FY 2008:

         Table XII.--Annual Fees for Uranium Recovery Licensees
                            [Other than DOE]
------------------------------------------------------------------------
                                                        FY 2008  annual
                    Facility type                             fee
------------------------------------------------------------------------
Class I (conventional mills).........................            $10,900
Class II (solution mining)...........................             10,900
11e.(2) disposal.....................................                N/A
11e.(2) disposal incidental to existing tailings                  10,900
 sites...............................................
Uranium water treatment..............................              6,500
------------------------------------------------------------------------

    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.
c. Operating Power Reactors
    The approximately $426.1 million in budgeted costs to be recovered 
through FY 2008 annual fees assessed to the power reactor class was 
calculated as shown in Table XIII. FY 2007 values are shown for 
comparison. (Individual values may not sum to totals due to rounding.)

    Table XIII.--Annual Fee Summary Calculations for Operating Power
                                Reactors
                          [Dollars in millions]
------------------------------------------------------------------------
                                                  FY 2007      FY 2008
           Summary fee calculations                final       proposed
------------------------------------------------------------------------
Total budgeted resources......................       $588.6       $698.8
Less estimated part 170 receipts..............       -180.7       -252.7
                                               -------------------------
    Net part 171 resources....................        407.9        446.1
Allocated generic transportation..............         +1.0         +1.1
Allocated surcharge...........................         -6.0         -4.6
Billing adjustments (including carryover).....         +1.1        -16.5
                                               -------------------------
    Total required annual fee recovery........        404.0        426.1
------------------------------------------------------------------------

    The budgeted costs to be recovered through annual fees to power 
reactors are divided equally among the 104 power reactors licensed to 
operate. This results in a FY 2008 annual fee of $4,097,000 per 
reactor. Additionally, each power reactor licensed to operate would be 
assessed the FY 2008 spent fuel storage/reactor decommissioning annual 
fee of $140,000. This results in a total FY 2008 annual fee of 
$4,237,000 for each power reactor licensed to operate.
    The annual fee for power reactors increases in FY 2008 compared to 
FY 2007 due to an increase in budgeted resources for a number of 
activities, including regulatory infrastructure for new reactor 
licensing activities related to combined license applications and 
design certifications. This increase is partially offset by the higher 
estimated part 170 collections, and adjustment for higher carryover 
compared with FY 2007. In FY 2008, the NRC estimates an increase in 
part 170 collections of about 40 percent for this fee. These 
collections offset the required annual fee recovery amount by a total 
of approximately $252.7 million. The annual fees for power reactors are 
presented in Sec.  171.15.
d. Spent Fuel Storage/Reactor Decommissioning
    For FY 2008, budgeted costs of approximately $17.3 million for 
spent fuel storage/reactor decommissioning are to be recovered through 
annual fees assessed to part 50 power reactors, and to part 72 
licensees who do not hold a part 50 license. Those reactor licensees 
that have ceased operations and have no fuel onsite are not subject to 
these annual fees. Table XIV shows the calculation of this annual fee 
amount. FY 2007 values are shown for comparison. (Individual values may 
not sum to totals due to rounding.)

[[Page 8518]]



 Table XIV.--Annual Fee Summary Calculations for the Spent Fuel Storage/
                    Reactor Decommissioning Fee Class
                          [Dollars in millions]
------------------------------------------------------------------------
                                                  FY 2007      FY 2008
           Summary fee calculations                final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $23.9        $22.4
Less estimated part 170 receipts..............         -4.2         -4.7
                                               -------------------------
    Net part 171 resources....................         19.7         17.7
Allocated generic transportation..............         +0.3         +0.3
Allocated surcharge...........................         -0.4         -0.2
Billing adjustments (including carryover).....         +0.0         -0.5
                                               -------------------------
    Total required annual fee recovery........         19.6         17.3
------------------------------------------------------------------------

    The required annual fee recovery amount is divided equally among 
123 licensees, resulting in a FY 2008 annual fee of $140,000 per 
licensee. The value of total budgeted resources for this fee class 
decreased in FY 2008 compared to FY 2007 due to a decrease in the 
budgeted resources for decommissioning, higher estimated part 170 
collections, and adjustment for higher carryover.
e. Test and Research Reactors (Non-power Reactors)
    Approximately $310,000 in budgeted costs is to be recovered through 
annual fees assessed to the test and research reactor class of licenses 
for FY 2008. Table XV summarizes the annual fee calculation for test 
and research reactors for FY 2008. FY 2007 values are shown for 
comparison. (Individual values may not sum to totals due to rounding.)

    Table XV.--Annual Fee Summary Calculations for Test and Research
                                Reactors
                          [Dollars in millions]
------------------------------------------------------------------------
                                                  FY 2007      FY 2008
           Summary fee calculations                final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $0.85        $0.99
Less estimated part 170 receipts..............        -0.55        -0.66
                                               -------------------------
    Net part 171 resources....................         0.30         0.33
Allocated generic transportation..............        +0.01        +0.01
Allocated surcharge...........................        -0.01        -0.01
Billing adjustments (including carryover).....        +0.00        -0.02
                                               -------------------------
    Total required annual fee recovery........         0.31         0.31
------------------------------------------------------------------------

    This required annual fee recovery amount is divided equally among 
the 4 test and research reactors subject to annual fees, and results in 
a FY 2008 annual fee of $77,400 for each licensee. The slight increase 
in annual fees from FY 2007 to FY 2008 is due to an increase in budget 
resources partially offset by higher part 170 revenue estimate for test 
and research reactors class, and adjustment for higher prior year 
collections. The part 170 revenue estimates for FY 2008 increased by 
approximately 20 percent compared with FY 2007 due to increased billing 
for test and research reactors, including federal facilities. The 
Energy Policy Act of 2005 authorized the NRC to bill federal facilities 
for part 170 services.
f. Rare Earth Facilities
    As discussed previously in Section II.B.2, ``Agreement State 
Activities'', NRC will no longer regulate any licensees under the Rare 
Earth fee class. The one licensee who has a specific license for 
receipt and processing of source material will be transferring to the 
Agreement State, Commonwealth of Pennsylvania, to be effective March 
31, 2008. In FY 2008, this rare earth facility will pay one-half of the 
annual fee in effect on its anniversary date in January 2008.
    Because the agency does not anticipate receiving an application for 
a rare earth facility this fiscal year, no budget resources were 
allocated to this fee class. NRC will not publish an annual fee for the 
fee category 2.A.(2)(c) in FY 2008.
g. Materials Users
    Table XVI shows the calculation of the FY 2008 annual fee amount 
for materials users licensees. FY 2007 values are shown for comparison. 
(Individual values may not sum to totals due to rounding.) Note the 
following fee categories under Sec.  171.16 are included in this fee 
class: 1.C., 1.D., 2.B., 2.C., 3.A. through 3.S., 4.A. through 4.C., 
5.A., 5.B., 6.A., 7.A. through 7.C., 8.A., 9.A. through 9.D., 16, and 
17.

[[Page 8519]]



     Table XVI.--Annual Fee Summary Calculations for Materials Users
                          [Dollars in millions]
------------------------------------------------------------------------
                                                  FY 2007      FY 2008
           Summary fee calculations                final       proposed
------------------------------------------------------------------------
Total budgeted resources......................        $25.8        $22.8
Less estimated part 170 receipts..............         -1.2         -2.0
                                               -------------------------
    Net part 171 resources....................         24.6         20.8
Allocated generic transportation..............         +0.9         +1.0
Allocated surcharge...........................         +0.3         +0.3
Billing adjustments (including carryover).....         +0.0         -0.5
                                               -------------------------
    Total required annual fee recovery........         25.9         21.6
------------------------------------------------------------------------

    The total required annual fees to be recovered from materials 
licensees decreased in FY 2008 mainly because of decreases in the 
budgeted resources allocated to this fee class for licensing 
activities, and adjustment for higher carryover. Annual fees for all 
fee categories within the materials users fee class decreased. The 
number of licensees also decreased because of the transfer of licensees 
to the Commonwealth of Pennsylvania. Because the agreement with the 
Commonwealth of Pennsylvania is expected to be effective March 31, 
2008, the licensees transferring to the Commonwealth of Pennsylvania 
will be subject to one-half of the annual fees.
    To equitably and fairly allocate the $21.6 million in FY 2008 
budgeted costs to be recovered in annual fees assessed to the 
approximately 4,400 diverse materials users licensees, the NRC will 
continue 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 NRC's 
cost to regulate each category. This 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 
$14.9 million in general costs (including allocated generic 
transportation costs) and is 0.77 for FY 2008. The average inspection 
cost is the average inspection hours for each fee category multiplied 
by the hourly rate of $238. The inspection priority is the interval 
between routine inspections, expressed in years. The inspection 
multiplier is the multiple necessary to recover approximately $6.3 
million in inspection costs, and is 1.39 for FY 2008. The unique 
category costs are any special costs that the NRC has budgeted for a 
specific category of licenses. For FY 2008, approximately $103,000 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 to be assessed to each licensee also includes a 
share of the $192,000 in fee relief allocated to the materials users 
fee class (see Section II.B.1., ``Application of `Fee Relief' '', of 
this document), and for certain categories of these licensees, a share 
of the approximately $509,000 in LLW surcharge costs allocated to the 
fee class. The annual fee for each fee category is shown in Sec.  
171.16(d).
h. Transportation
    Table XVII shows the calculation of the FY 2008 generic 
transportation budgeted resources to be recovered through annual fees. 
FY 2007 values are shown for comparison. (Individual values may not sum 
to totals due to rounding.)

     Table XVII.--Annual Fee Summary Calculations for Transportation
                          [Dollars in millions]
------------------------------------------------------------------------
                                                  FY 2007      FY 2008
           Summary fee calculations                final       proposed
------------------------------------------------------------------------
Total budgeted resources......................         $5.0         $5.7
Less estimated part 170 receipts..............         -1.2         -1.7
                                               -------------------------
    Net part 171 resources....................          3.8          4.0
------------------------------------------------------------------------

    The total FY 2008 budgeted resources for generic transportation 
activities, including those to support DOE Certificates of Compliance 
(CoCs), are $4.0 million. The budgeted resources for these activities 
in FY 2008 increased by 6 percent compared with FY 2007, mostly due to 
increased budgeted resources for licensing activities. 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).
    Consistent with the policy established in the NRC's FY 2006 final 
fee rule (71 FR 30734; May 30, 2006), the NRC will recover generic 
transportation costs unrelated to DOE as part of existing annual fees 
for license fee classes. NRC will continue to assess a separate annual 
fee under Sec.  171.16, fee category 18.A., for DOE transportation 
activities. The CoCs for DOE decreased in FY 2008 compared to FY 2007 
resulting in a

[[Page 8520]]

lower annual fee for DOE under fee category 18.A.
    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. 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. In FY 2008, the 
generic transportation cost allocated to the other fee classes 
increased compared to FY 2007 due to the increase in total budgeted 
resources for transportation.
    The distribution of these resources to the license fee classes and 
DOE is shown in Table XVIII. (Individual values may not sum to totals 
due to rounding.) The distribution is adjusted to account for the 
licensees in each fee class that are fee exempt. For example, if 3 CoCs 
benefit the entire test and research reactor class, but only 4 of 30 
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 
((4/30)*3), or 0.4 CoCs.

                     Table XVIII.--Distribution of Generic Transportation Resources, FY 2008
                                              [Dollars in millions]
----------------------------------------------------------------------------------------------------------------
                                                            Number CoCs       Percentage  of   Allocated generic
                 License fee class/DOE                     benefiting fee       total CoCs       transportation
                                                           class (or DOE)       (percent)          resources
----------------------------------------------------------------------------------------------------------------
Total..................................................              128.0              100.0              $4.00
DOE....................................................               31.0               24.2               1.00
Operating Power Reactors...............................               37.0               28.9               1.15
Spent Fuel Storage/Reactor Decommissioning.............                9.0                7.0               0.28
Test and Research Reactors.............................                0.4                0.3               0.01
Fuel Facilities........................................               18.0               14.1               0.56
Materials Users........................................               32.6               25.4               1.02
----------------------------------------------------------------------------------------------------------------

    The NRC is proposing to continue to assess DOE an annual fee based 
on the part 71 CoCs it holds, and not allocate these DOE-related 
resources to other licensees' annual fees, because these resources 
specifically support DOE. Note that DOE's proposed annual fee includes 
a reduction for the fee relief (see Section II.B.1, ``Application of 
`Fee Relief' '', of this document), resulting in a total annual fee of 
$880,000 for FY 2008. This fee decrease from last year is primarily due 
to a decrease in the number of DOE CoCs.
4. Administrative Amendments
    The NRC is adding program codes next to the materials users fee 
categories in Sec.  171.16. When NRC receives a materials users license 
application, a five-digit program code number is assigned by the agency 
to each license to designate the major activity or principal use 
authorized in the license. More than one code may apply to a given 
license. The fee amount for the license under the 10 CFR parts 170 and 
171 is determined by the fee category which is also based on the 
authorized usage described on the license. To reduce the risk of 
misinterpretation of material uses authorized in the license while 
establishing a fee category, the NRC is implementing a process that 
links a program code directly to a fee category. Once a program code is 
assigned to the license, it will assist the licensee to correctly 
identify the fee amount(s) by looking up the program code(s) in Sec.  
171.16.
    The NRC is modifying the second sentence of footnote 1 in Sec.  
171.16 to clarify that the annual fee waiver will be granted if the 
licensed activities have permanently ceased before the beginning of the 
fiscal year. The reference to the last day of the prior year as the 
date for cessation of licensed activities has been deleted. This will 
improve the clarity of the sentence.
    In summary, the NRC is--
    1. Using the NRC's fee relief to reduce all licensees' annual fees, 
based on their percent of the NRC budget;
    2. Revising the number of NRC licensees to reflect the expectation 
that Commonwealth of Pennsylvania will become an Agreement State on 
March 31, 2008;
    3. Establishing rebaselined annual fees for FY 2008; and
    4. Making certain administrative changes for purposes of 
clarification and consistency.

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 
ADDRESSES heading.

IV. Voluntary Consensus Standards

    The National Technology Transfer and Advancement Act of 1995, 15 
U.S.C. 3701, 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. The NRC is proposing to 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 2008, 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 rule. 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

[[Page 8521]]

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 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 of 1954 and with applicable regulations;
    (3) The NRC could charge for costs incurred in conducting 
environmental reviews required by the National Environmental Policy 
Act, 42 U.S.C. 4321;
    (4) The NRC properly included the costs of uncontested hearings and 
of administrative and technical support services in the fee schedule;
    (5) The NRC could assess a fee for renewing a license to operate a 
low-level radioactive waste burial site; and
    (6) The NRC's fees were not arbitrary or capricious.
    With respect to 10 CFR part 171, on November 5, 1990, the Congress 
passed OBRA-90, which required that, for FYs 1991 through 1995, 
approximately 100 percent of the NRC budget authority be recovered 
through the assessment of fees. OBRA-90 was subsequently amended to 
extend the 100 percent fee recovery requirement through FY 2000. The FY 
2001 Energy and Water Development Appropriation Act (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 was 90 percent in 
FY 2005. The FY 2007 EWDAA extended this 90 percent fee recovery 
requirement for FY 2007. Section 637 of the Energy Policy Act of 2005 
made the 90 percent fee recovery requirement permanent beginning in FY 
2007. As a result, the NRC is required to recover approximately 90 
percent of its FY 2008 budget authority, less the amounts appropriated 
from the NWF, WIR, and generic homeland security 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 2008 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 2008 budget of $926.1 million less the funds directly 
appropriated from the NWF to cover the NRC's high-level waste program 
and for WIR, generic homeland security 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 2008 
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 2008. This 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 2008.

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.

[[Page 8522]]

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: Section 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)); sec. 651(e), Pub. L. 109-58, 119 Stat. 806-810 (42 U.S.C. 
2014, 2021, 2021(b), 2111).
    2. Section 170.20 is revised to read as follows:


Sec.  170.20  Average cost per professional staff-hour.

* * * * *
    Fees for permits, licenses, amendments, renewals, special projects, 
10 CFR 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 professional staff-hour 
rate of $238 per hour.
    3. In Sec.  170.21, in the table, fee category K is revised to read 
as follows:


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

* * * * *

                        Schedule of Facility Fees
                     [See footnotes at end of table]
------------------------------------------------------------------------
                                                               Fees \1\
            Facility categories and type of fees                 \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; or license       $15,500
         exemption request.................................
    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; or license         9,100
         exemption request.................................
    3. Application for export of components requiring the
     assistance of the Executive Branch to obtain foreign
     government assurances.
        Application--new license, or amendment; or license         3,800
         exemption request.................................
    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; or license         2,400
         exemption request.................................
    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 to license.........................          720
 
------------------------------------------------------------------------
 \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.
\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.
* * * * * * *
\4\ Imports only of major components for end-use at NRC-licensed
  reactors are now authorized under NRC general import license.


[[Page 8523]]

    4. In Sec.  170.31, the table 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.

* * * * *

                       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 (High           Full Cost
         Enriched Uranium) [Program Code(s): 21130].....
        (b) Low Enriched Uranium in Dispersible Form           Full Cost
         Used for Fabrication of Power Reactor Fuel
         [Program Code(s): 21210].......................
    (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 [Program        Full Cost
         Code(s): 21310, 21320].........................
        (b) Gas centrifuge enrichment demonstration            Full Cost
         facilities.....................................
        (c) Others, including hot cell facilities.......       Full Cost
    B. Licenses for receipt and storage of spent fuel
     and reactor-related Greater than Class C (GTCC)
     waste at an independent spent fuel storage
     installation (ISFSI)
        [Program Code(s): 23200]........................       Full Cost
    C. Licenses for possession and use of special
     nuclear material in sealed sources contained in
     devices used in industrial measuring systems,
     including x-ray fluorescence analyzers. \4\
        Application [Program Code(s): 22140]............          $1,100
    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 under Category
     1.A. \4\
        Application [Program Code(s): 22110, 22111,                2,200
         22120, 22131, 22136, 22150, 22151, 22161,
         22163, 22170, 23100, 23300, 23310].............
        E. Licenses or certificates for construction and       Full Cost
         operation of a uranium enrichment facility
         [Program Code(s): 21200].......................
2. Source material:
    A. (1) Licenses for possession and use of source
     material for refining uranium mill concentrates to
     uranium hexafluoride
        [Program Code(s): 11400]........................       Full Cost
    (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 [Program Code(s): 11100].       Full Cost
        (b) Class II facilities [Program Code(s): 11500]       Full Cost
        (c) Other facilities [Program Code(s): 11700]...       Full Cost
    (3) Licenses that authorize the receipt of byproduct
     material, as defined in Sec.   11e.(2) of the
     Atomic Energy Act, from other persons for
     possession and disposal, except those licenses
     subject to the fees in Category 2.A.(2) or Category
     2.A.(4)
        [Program Code(s): 11600]........................       Full Cost
    (4) Licenses that authorize the receipt of byproduct       Full Cost
     material, as defined in Sec.   11e.(2) of the
     Atomic Energy Act, from other persons for
     possession and disposal incidental to the disposal
     of the uranium waste tailings generated by the
     licensee's milling operations, except those
     licenses subject to the fees in Category 2.A.(2)...
    (5) Licenses that authorize the possession of source       Full Cost
     material related to removal of contaminants (source
     material) from drinking water......................
    B. Licenses which authorize the possession, use, and/
     or installation of source material for shielding.
        Application [Program Code(s): 11210]............             260
    C. All other source material licenses.
        Application [Program Code(s): 11200, 11220,                9,400
         11221, 11230, 11300, 11800, 11810].............
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 [Program Code(s): 03211, 03212,               11,200
         03213].........................................
    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 [Program Code(s): 03214, 03215,                4,200
         22135, 22162]..................................
    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 3.D.
        Application [Program Code(s): 02500, 02511,                7,400
         02513].........................................
    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 [Program Code(s): 02512, 02514].....           4,100
    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 [Program Code(s): 03510, 03520].....           2,700

[[Page 8524]]

 
    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 [Program Code(s): 03511]............           5,600
    G. Licenses for possession and use of 10,000 curies
     or more of byproduct material in sealed sources for
     irradiation of materials in which the source is
     exposed for irradiation purposes. This category
     also includes underwater irradiators for
     irradiation of materials where the source is not
     exposed for irradiation purposes.
        Application [Program Code(s): 03521]............          13,300
    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 [Program Code(s): 03255]............           9,700
    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 [Program Code(s): 03250, 03251,                9,700
         03252, 03253, 03254, 03256]....................
    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 [Program Code(s): 03240, 03241,                1,700
         03243].........................................
    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 [Program Code(s): 03242, 03244].....           1,000
    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 [Program Code(s): 01100, 01110,                9,400
         01120, 03610, 03611, 03612, 03613].............
    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 [Program Code(s): 03620]............           3,300
    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 4.A., 4.B., and 4.C.
        Application [Program Code(s): 03219, 03225,                6,100
         03226].........................................
    O. Licenses for possession and use of byproduct
     material issued under part 34 of this chapter for
     industrial radiography operations.
        Application [Program Code(s): 03310, 03320].....           4,500
    P. All other specific byproduct material licenses,
     except those in Categories 4.A. through 9.D.
        Application [Program Code(s): 02400, 02410,                1,300
         03120, 03121, 03122, 03123, 03124, 03220,
         03221, 03222, 03800, 03810, 22130].............
    Q. Registration of a device(s) generally licensed
     under part 31 of this chapter.
        Registration....................................             270
    R. Possession of items or products containing radium-
     226 identified in 10 CFR 31.12 which exceed the
     number of items or limits specified in that
     section. \6\
        1. Possession of quantities exceeding the number
         of items or limits in 10 CFR 31.12(a)(4), or
         (5) but less than or equal to 10 times the
         number of items or limits specified.
        Application [Program Code(s): 02700]............             550
        2. Possession of quantities exceeding 10 times
         the number of items or limits specified in 10
         CFR 31.12(a)(4), or (5).C.
        Application [Program Code(s): 02710]............           1,300
    S. Licenses for production of accelerator-produced
     radionuclides.
        Application [Program Code(s): 03210]............           7,400
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt of
     waste byproduct material, source material, or
     special nuclear material from other persons for the
     purpose of contingency storage or commercial land
     disposal by the licensee; or licenses authorizing
     contingency storage of low-level radioactive waste
     at the site of nuclear power reactors; or licenses
     for receipt of waste from other persons for
     incineration or other treatment, packaging of
     resulting waste and residues, and transfer of
     packages to another person authorized to receive or
     dispose of waste material.
        [Program Code(s): 03231, 03233, 03235, 03236,          Full Cost
         06100, 06101]..................................
    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 [Program Code(s): 03234]............           2,900

[[Page 8525]]

 
    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 [Program Code(s): 03232]............           4,300
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 [Program Code(s): 03110, 03111,                1,600
         03112].........................................
    B. Licenses for possession and use of byproduct
     material for field flooding tracer studies.
        Licensing [Program Code(s): 03113]..............       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 [Program Code(s): 03218]............          19,000
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40, and 70 of
     this chapter for human use of byproduct material,
     source material, or special nuclear material in
     sealed sources contained in teletherapy devices.
        Application [Program Code(s): 02300, 02310].....          10,400
    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. This category also includes the possession
     and use of source material for shielding when
     authorized on the same license.
        Application [Program Code(s): 02110]............           7,400
    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 [Program Code(s): 02120, 02121,                2,300
         02200, 02201, 02210, 02220, 02230, 02231,
         02240, 22160]..................................
8. Civil defense:
    A. Licenses for possession and use of byproduct
     material, source material, or special nuclear
     material for civil defense activities.
        Application [Program Code(s): 03710]............             550
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........................          19,500
    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........................          19,500
    C. Safety evaluation of sealed sources containing
     byproduct material, source material, or special
     nuclear material, except reactor fuel, for
     commercial distribution.
        Application--each source........................           2,700
    D. Safety evaluation of sealed sources containing
     byproduct material, source material, or special
     nuclear material, manufactured in accordance with
     the unique specifications of, and for use by, a
     single applicant, except reactor fuel.
        Application--each source........................             910
10. Transportation of radioactive material:
    A. Evaluation of casks, packages, and shipping
     containers.
        1. Spent Fuel, High-Level Waste, and plutonium         Full Cost
         air packages...................................
        2. Other Casks..................................       Full Cost
    B. Quality assurance program approvals issued under
     part 71 of this chapter.
        1. Users and Fabricators.
        Application.....................................           4,400
        Inspections.....................................       Full Cost
        2. Users.
        Application.....................................           4,400
        Inspections.....................................       Full Cost
    C. Evaluation of security plans, route approvals,          Full Cost
     route surveys, and transportation security devices
     (including immobilization devices).................
11. Review of standardized spent fuel facilities........       Full Cost
12. Special projects:
    Including approvals, preapplication/licensing              Full Cost
     activities, and inspections........................
13. A. Spent fuel storage cask Certificate of Compliance       Full Cost
    B. Inspections related to storage of spent fuel            Full Cost
     under 72.210 of this chapter.......................
14. A. Byproduct, source, or special nuclear material          Full Cost
 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, 2007.................

[[Page 8526]]

 
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 amendment; or                15,500
         license exemption request......................
    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 amendment; or                 9,100
         license exemption request......................
    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 amendment; or                 3,800
         license exemption request......................
    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 amendment; or                 2,400
         license exemption request......................
    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.................................             720
    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 of this chapter
     (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 amendment; or                15,500
         license exemption request......................
    G. Application for export of Category 1 materials
     requiring Executive Branch review, Commission
     review, and/or government-to-government consent.
        Application--new license, or amendment; or                 9,100
         license exemption request......................
    H. Application for export of Category 1 materials
     requiring Commission review and government-to-
     government consent.
        Application--new license, or amendment; or                 5,700
         license exemption request......................
    I. Application for export of Category 1 material
     requiring government-to-government consent.
        Application--new license, or amendment; or                 4,800
         license exemption request......................
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 amendment; or                15,500
         license exemption request......................
    K. Applications for export of Category 2 materials
     requiring Executive Branch review and/or Commission
     review.
        Application--new license, or amendment; or                 9,100
         license exemption request......................
    L. Application for the export of Category 2
     materials.
        Application--new license, or amendment; or                 4,300
         license exemption request......................
Category 1 Imports:
    M. Application for the import of Category 1 material
     requiring Commission review.
        Application--new license, or amendment; or                 4,500
         license exemption request......................
    N. Application for the import of Category 1
     material.
        Application--new license, or amendment; or                 3,800
         license exemption request......................
Category 2 Imports:
    O. Application for the import of Category 2
     material.
        Application--new license, or amendment; or                 3,300
         license exemption request......................
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 amendment; or                 5,200
         license exemption request......................
    Q. Application for the import of Category 1 material
     with agent and multiple licensees.
        Application--new license, or amendment; or                 4,300
         license exemption request......................
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.................................             720
16. Reciprocity:
    Agreement State licensees who conduct activities
     under the reciprocity provisions of 10 CFR 150.20.
        Application.....................................           1,400
17. Master materials licenses of broad scope issued to
 Government agencies:
        Application.....................................          22,000

[[Page 8527]]

 
18. Department of Energy:
    A. Certificates of Compliance. Evaluation of casks,        Full Cost
     packages, and shipping containers (including spent
     fuel, high-level waste, and other casks, and
     plutonium air packages)............................
    B. Uranium Mill Tailings Radiation Control Act            Full Cost
     (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.
(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 1.C. only.
(b) Licensing fees. Fees for reviews of applications for new licenses
  and for renewals and amendments to existing licenses, pre-application
  consultations and reviews of other documents submitted to NRC for
  review, and project manager time for fee categories subject to full
  cost fees, 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 an export or
  import 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 9.A. through 9.D.
 
\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 1.A., 1.B., and 1.E. are not
  subject to fees under Categories 1.C. and 1.D. 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 of this chapter, only the higher of
  the two applicable fee amounts must be paid.
\6\ Persons who possess radium sources that are used for operational
  purposes in another fee category are not also subject to the fees in
  this category. (This exception does not apply if the radium sources
  are possessed for storage only.)

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

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

    Authority: Section 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. 109-103, 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); sec. 
651(e), Pub. L. 109-58, 119 Stat. 806-810 (42 U.S.C. 2014, 2021, 
2021(b), 2111).

    6. In Sec.  171.15, paragraph (b)(1), the introductory text of 
paragraph (b)(2), paragraph (c)(1), the introductory text of paragraphs 
(c)(2) and (d)(1), and paragraphs (d)(2), (d)(3), 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 2008 annual fee for each operating power reactor 
which must be collected by September 30, 2008, is $4,097,000.
    (2) The FY 2008 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 2008 spent storage/
reactor decommissioning base annual fee are shown in paragraphs 
(c)(2)(i) and (ii) of this section. The activities comprising the FY 
2008 surcharge are shown in paragraph (d)(1) of this section. The 
activities comprising the FY 2008 base annual fee for operating power 
reactors are as follows:
* * * * *
    (c)(1) The FY 2008 annual fee for each power reactor holding a 10 
CFR part 50 license that is in a decommissioning or possession only 
status and has spent fuel onsite, and each independent spent fuel 
storage 10 CFR part 72 licensee who does not hold a 10 CFR part 50 
license is $140,000.

[[Page 8528]]

    (2) The FY 2008 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 2008 surcharge are shown in paragraph (d)(1) of this 
section. The activities comprising the FY 2008 spent fuel storage/
reactor decommissioning rebaselined annual fee are:
* * * * *
    (d)(1) The surcharge allocated to annual fees includes the budgeted 
resources for the activities listed in paragraph (d)(1)(i) of this 
section, plus the total budgeted resources for the activities included 
in paragraphs (d)(1)(ii) and (d)(1)(iii) of this section as reduced by 
the appropriations NRC receives for these types of activities. If the 
NRC's appropriations for these types of activities are greater than the 
budgeted resources for the activities included in paragraphs (d)(1)(ii) 
and (d)(1)(iii) of this section for a given FY, a negative surcharge 
(or annual fee reduction) will be allocated to annual fees. The 
activities comprising the FY 2008 surcharge are as follows:
* * * * *
    (2) The total FY 2008 surcharge allocated to the operating power 
reactor class of licenses is -$4.6 million, not including the amount 
allocated to the spent fuel storage/reactor decommissioning class. The 
FY 2008 operating power reactor surcharge to be assessed to each 
operating power reactor is approximately -$44,000. This amount is 
calculated by dividing the total operating power reactor surcharge (-
$4.6 million) by the number of operating power reactors (104).
    (3) The FY 2008 surcharge allocated to the spent fuel storage/
reactor decommissioning class of licenses is -$218,000. The FY 2008 
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 10 CFR part 72 licensee who does not 
hold a 10 CFR part 50 license is approximately -$1,775. 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 10 CFR part 
72 licensees who do not hold a 10 CFR part 50 license.
    (e) The FY 2008 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.............................................    $77,400
Test reactor.................................................     77,400
 

    7. In Sec.  171.16, paragraphs (c), (d), and the introductory text 
of paragraph (e) are revised to read as follows:


Sec.  171.16   Annual fees: Materials licensees, holders of 
certificates of compliance, holders of sealed source and device 
registrations, holders of quality assurance program approvals, and 
government agencies licensed by the NRC.

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

------------------------------------------------------------------------
                                                        Maximum  annual
                                                       fee per  licensed
                                                            category
------------------------------------------------------------------------
Small Businesses Not Engaged in Manufacturing
 (Average gross receipts over last 3 completed fiscal
 years):
    $350,000 to $6.5 million.........................             $2,300
    Less than $350,000...............................                500
Small Not-For-Profit Organizations (Annual Gross
 Receipts):
    $350,000 to $6.5 million.........................              2,300
    Less than $350,000...............................                500
Manufacturing entities that have an average of 500
 employees or fewer:
    35 to 500 employees..............................              2,300
    Fewer than 35 employees..........................                500
Small Governmental Jurisdictions (Including publicly
 supported educational institutions) (Population):
    20,000 to 50,000.................................              2,300
    Fewer than 20,000................................                500
Educational Institutions that are not State or
 Publicly Supported, and have 500 Employees or Fewer:
    35 to 500 employees..............................              2,300
    Fewer than 35 employees..........................                500
------------------------------------------------------------------------

    (d) The FY 2008 annual fees are comprised of a base annual fee and 
an additional charge (surcharge). The activities comprising the FY 2008 
surcharge are shown for convenience in paragraph (e) of this section. 
The FY 2008 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 \1\
            Category of materials licenses                  \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          $3,082,000
         Enriched Uranium) [Program Code(s): 21130]..

[[Page 8529]]

 
        (b) Low Enriched Uranium in Dispersible Form             921,000
         Used for Fabrication of Power Reactor Fuel
         [Program Code(s): 21210]....................
    (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                   349,000
         [Program Code(s): 21310, 21320].............
        (b) Gas centrifuge enrichment demonstration              572,000
         facilities..................................
        (c) Others, including hot cell facilities....            254,000
    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) [Program Code(s): 23200]...
    C. Licenses for possession and use of special                  1,600
     nuclear material in sealed sources contained in
     devices used in industrial measuring systems,
     including x-ray fluorescence analyzers [Program
     Code(s): 22140].................................
    D. All other special nuclear material licenses,                4,500
     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) [Program Code(s): 22110, 22111,
     22120, 22131, 22136, 22150, 22151, 22161, 22163,
     22170, 23100, 23300, 23310].....................
    E. Licenses or certificates for the operation of           1,747,000
     a uranium enrichment facility [Program Code(s):
     21200]..........................................
2. Source material:
    A. (1) Licenses for possession and use of source             604,000
     material for refining uranium mill concentrates
     to uranium hexafluoride [Program Code(s): 11400]
    (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\ [Program Code(s):              10,900
         11100]......................................
        (b) Class II facilities \4\ [Program Code(s):             10,900
         11500]......................................
        (c) Other facilities \4\ [Program Code(s):               \5\ N/A
         11700]......................................
    (3) Licenses that authorize the receipt of                   \5\ N/A
     byproduct material, as defined in Sec.   11e.(2)
     of the Atomic Energy Act, from other persons for
     possession and disposal, except those licenses
     subject to the fees in Category 2.A.(2) or
     Category 2.A.(4) [Program Code(s): 11600].......
    (4) Licenses that authorize the receipt of                    10,900
     byproduct material, as defined in Sec.   11e.(2)
     of the Atomic Energy Act, from other persons for
     possession and disposal incidental to the
     disposal of the uranium waste tailings generated
     by the licensee's milling operations, except
     those licenses subject to the fees in Category
     2.A.(2).........................................
    (5) Licenses that authorize the possession of                  6,500
     source material related to removal of
     contaminants (source material) from drinking
     water...........................................
    B. Licenses that authorize only the possession,                  600
     use and/or installation of source material for
     shielding [Program Code(s): 11210]..............
    C. All other source material licenses [Program                 10,30
     Code(s): 11200, 11220, 11221, 11230, 11300,
     11800, 11810]...................................
3. Byproduct material:
    A. Licenses of broad scope for possession and use             23,100
     of byproduct material issued under parts 30 and
     33 of this chapter for processing or
     manufacturing of items containing byproduct
     material for commercial distribution [Program
     Code(s): 03211, 03212, 03213]...................
    B. Other licenses for possession and use of                    6,500
     byproduct material issued under part 30 of this
     chapter for processing or manufacturing of items
     containing byproduct material for commercial
     distribution [Program Code(s): 03214, 03215,
     22135, 22162]...................................
    C. Licenses issued under Sec.  Sec.   32.72 and/               9,200
     or 32.74 of this chapter authorizing the
     processing or manufacturing and distribution or
     redistribution of radiopharmaceuticals,
     generators, reagent kits and/or sources and
     devices containing byproduct material. This
     category also includes the possession and use of
     source material for shielding authorized 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 3.D.
     [Program Code(s): 02500, 02511, 02513]..........
    D. Licenses and approvals issued under Sec.  Sec.              5,300
       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
     [Program Code(s): 02512, 02514].................
    E. Licenses for possession and use of byproduct                3,100
     material in sealed sources for irradiation of
     materials in which the source is not removed
     from its shield (self-shielded units) [Program
     Code(s): 03510, 03520]..........................
    F. Licenses for possession and use of less than                6,100
     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 [Program Code(s): 03511]...............
    G. Licenses for possession and use of 10,000                  24,600
     curies or more of byproduct material in sealed
     sources for irradiation of materials in which
     the source is exposed for irradiation purposes.
     This category also includes underwater
     irradiators for irradiation of materials in
     which the source is not exposed for irradiation
     purposes [Program Code(s): 03521]...............
    H. Licenses issued under Subpart A of part 32 of               8,800
     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 [Program Code(s):
     03255]..........................................

[[Page 8530]]

 
    I. Licenses issued under Subpart A of part 32 of               8,200
     this chapter to distribute items containing
     byproduct material or quantities of byproduct
     material that do not require device evaluation
     to persons exempt from the licensing
     requirements of part 30 of this chapter, except
     for specific licenses authorizing redistribution
     of items that have been authorized for
     distribution to persons exempt from the
     licensing requirements of part 30 of this
     chapter [Program Code(s): 03250, 03251, 03252,
     03253, 03254, 03256]............................
    J. Licenses issued under Subpart B of part 32 of               1,900
     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 [Program Code(s): 03240, 03241,
     03243]..........................................
    K. Licenses issued under Subpart B of part 32 of               1,500
     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 [Program Code(s): 03242, 03244].........
    L. Licenses of broad scope for possession and use             11,700
     of byproduct material issued under parts 30 and
     33 of this chapter for research and development
     that do not authorize commercial distribution
     [Program Code(s): 01100, 01110, 01120, 03610,
     03611, 03612, 03613]............................
    M. Other licenses for possession and use of                    4,300
     byproduct material issued under part 30 of this
     chapter for research and development that do not
     authorize commercial distribution [Program
     Code(s): 03620].................................
    N. Licenses that authorize services for other                  6,600
     licensees, except: (1) Licenses that authorize
     only calibration and/or leak testing services
     are subject to the fees specified in fee
     Category 3.P.; and (2) Licenses that authorize
     waste disposal services are subject to the fees
     specified in fee categories 4.A., 4.B., and 4.C.
     [Program Code(s): 03219, 03225, 03226]..........
    O. Licenses for possession and use of byproduct               11,200
     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 [Program Code(s): 03310, 03320]....
    P. All other specific byproduct material                       2,100
     licenses, except those in Categories 4.A.
     through 9.D. [Program Code(s): 02400, 02410,
     03120, 03121, 03122, 03123, 03124, 03220, 03221,
     03222, 03800, 03810, 22130].....................
    Q. Registration of devices generally licensed               \13\ N/A
     under part 31 of this chapter...................
    R. Possession of items or products containing
     radium-226 identified in 10 CFR 31.12 which
     exceed the number of items or limits specified
     in that section:\14\
        1. Possession of quantities exceeding the                  1,700
         number of items or limits in 10 CFR
         31.12(a)(4), or (5) but less than or equal
         to 10 times the number of items or limits
         specified [Program Code(s): 02700]..........
        2. Possession of quantities exceeding 10                   2,100
         times the number of items or limits
         specified in 10 CFR 31.12(a)(4), or (5)
         [Program Code(s): 02710]....................
    S. Licenses for production of accelerator-                     8,500
     produced radionuclides [Program Code(s): 03210].
4. Waste disposal and processing:
    A. Licenses specifically authorizing the receipt             \5\ N/A
     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 [Program Code(s): 03231, 03233, 03235,
     03236, 06100, 06101]............................
    B. Licenses specifically authorizing the receipt               9,400
     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
     [Program Code(s): 03234]........................
    C. Licenses specifically authorizing the receipt               7,200
     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
     [Program Code(s): 03232]........................
5. Well logging:
    A. Licenses for possession and use of byproduct                3,400
     material, source material, and/or special
     nuclear material for well logging, well surveys,
     and tracer studies other than field flooding
     tracer studies [Program Code(s): 03110, 03111,
     03112]..........................................
    B. Licenses for possession and use of byproduct              \5\ N/A
     material for field flooding tracer studies
     [Program Code(s): 03113]........................
6. Nuclear laundries:
    A. Licenses for commercial collection and laundry             20,800
     of items contaminated with byproduct material,
     source material, or special nuclear material
     [Program Code(s): 03218]........................
7. Medical licenses:
    A. Licenses issued under parts 30, 35, 40, and 70             10,600
     of this chapter for human use of byproduct
     material, source material, or special nuclear
     material in sealed sources contained in
     teletherapy devices. This category also includes
     the possession and use of source material for
     shielding when authorized on the same license
     [Program Code(s): 02300, 02310].................
    B. Licenses of broad scope issued to medical                  23,000
     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\ [Program Code(s): 02110].......
    C. Other licenses issued under parts 30, 35, 40,               3,900
     and 70 of this chapter for human use of
     byproduct material, source material, and/or
     special nuclear material except licenses for
     byproduct material, source material, or special
     nuclear material in sealed sources contained in
     teletherapy devices. This category also includes
     the possession and use of source material for
     shielding when authorized on the same
     license.\9\ [Program Code(s): 02120, 02121,
     02200, 02201, 02210, 02220, 02230, 02231, 02240,
     22160]..........................................

[[Page 8531]]

 
8. Civil defense:
    A. Licenses for possession and use of byproduct                1,700
     material, source material, or special nuclear
     material for civil defense activities [Program
     Code(s): 03710].................................
9. Device, product, or sealed source safety
 evaluation:
    A. Registrations issued for the safety evaluation             14,900
     of 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             14,900
     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...
    C. Registrations issued for the safety evaluation              2,100
     of sealed sources containing byproduct material,
     source material, or special nuclear material,
     except reactor fuel, for commercial distribution
    D. Registrations issued for the safety evaluation                700
     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..................
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                     \6\ N/A
         plutonium 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                    \6\ N/A
 Compliance..........................................
    B. General licenses for storage of spent fuel               \12\ N/A
     under 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, 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              227,000
 to Government agencies..............................
18. Department of Energy:
    A. Certificates of Compliance....................       \10\ 880,000
    B. Uranium Mill Tailings Radiation Control Act               596,000
     (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 FY. 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, 2007, and permanently ceased licensed activities
  entirely before this date. Annual fees for licensees who filed for
  termination of a license, downgrade of a license, or for a possession
  only license during the FY and for new licenses issued during the FY
  will be prorated in accordance with the provisions of Sec.   171.17.
  If a person holds more than one license, certificate, registration, or
  approval, the annual fee(s) will be assessed for each license,
  certificate, registration, or approval held by that person. For
  licenses that authorize more than one activity on a single license
  (e.g., human use and irradiator activities), annual fees will be
  assessed for each category applicable to the license. Licensees paying
  annual fees under Category 1.A.(1) are not subject to the annual fees
  for Categories 1.C. and 1.D. for sealed sources authorized in the
  license.
\2\ Payment of the prescribed annual fee does not automatically renew
  the license, certificate, registration, or approval for which the fee
  is paid. Renewal applications must be filed in accordance with the
  requirements of parts 30, 40, 70, 71, 72, or 76 of this chapter.
\3\ Each FY, 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 that also hold nuclear medicine
  licenses under Categories 7.B. or 7.C.
\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.
\14\ Persons who possess radium sources that are used for operational
  purposes in another fee category are not also subject to the fees in
  this category. (This exception does not apply if the radium sources
  are possessed for storage only.)


[[Page 8532]]

    (e) The surcharge allocated to annual fees includes the budgeted 
resources for the activities listed in paragraph (e)(1) of this 
section, plus the total budgeted resources for the activities included 
in paragraphs (e)(2) and (e)(3) of this section as reduced by the 
appropriations NRC receives for these types of activities. If the NRC's 
appropriations for these types of activities are greater than the 
budgeted resources for the activities included in paragraphs (e)(2) and 
(e)(3) of this section for a given FY, a negative surcharge (or annual 
fee reduction) will be allocated to annual fees. The activities 
comprising the FY 2008 surcharge are as follows:
* * * * *

    Dated at Rockville, Maryland, this 28th day of January, 2008.

    For the Nuclear Regulatory Commission.
William M. McCabe,
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 Proposed 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.
    The NRC is required each year, under OBRA-90, as amended, to 
recover approximately 90 percent of its budget authority (less 
amounts appropriated from the NWF and for other activities 
specifically removed from the fee base), through fees to NRC 
licensees and applicants. In total, the NRC is required to bill 
approximately $760.7 million in fees for FY 2008.
    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 the NRC in identifying and determining the fees 
to be assessed and collected in any given FY.
    The Commission is proposing to rebaseline its part 171 annual 
fees in FY 2008. Rebaselining fees results in increased annual fees 
compared to FY 2007 for the power reactors and non-power reactors, 
and decreased annual fees for four classes of licenses (spent fuel 
storage/reactor decommissioning, fuel facilities, transportation, 
and materials users). Within the uranium recovery fee class, annual 
fees for the all the non DOE licensees decrease, while annual fee 
for the DOE increases slightly. There is no annual fee for the rare 
earth fee class because this NRC fee class will no longer exist in 
FY 2008. As discussed in Section II.B.2., ``Agreement State 
Activities'', of this document, NRC's only rare earth facility will 
transfer to the Commonwealth of Pennsylvania when it becomes an 
Agreement State.
    The Congressional Review Act of 1996 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 analysis and the small 
entity compliance guide (Attachment 1) have been prepared for the FY 
2008 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 licensed by the NRC, 
including those licensed under the NRC materials program. The 
comments received on previous proposed fee rules and the small 
entity certifications received in response to previous final fee 
rules indicate that NRC licensees qualifying as small entities under 
the NRC's size standards are primarily materials licensees. 
Therefore, this analysis will focus on the economic impact of the 
fees on materials licensees. In FY 2007, about 32 percent of these 
licensees (approximately 1,400 licensees) qualified as small 
entities.
    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 licenses, approvals, 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

[[Page 8533]]

maximum small entity annual fee in FY 1991.
    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. 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 fewer 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 2001. The NRC performed a similar review, and 
reached the same conclusion, in FY 2005.
    The NRC re-examined its small entity fees for the FY 2007 fee 
rulemaking, 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 
entire 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 2007, on 
average, for those categories of materials licensees that contain a 
number of small entities, the NRC determined that the current small 
entity fees of $500 and $2,300 continued to meet the objective of 
providing relief to many small entities while recovering from them 
some of the costs that benefit them.
    As part of the small entity review in FY 2007, the NRC also 
considered whether it should establish reduced fees for small 
entities under part 170. The NRC received one comment requesting 
that such small entity fees be considered for certain export 
licenses, particularly in light of the recent increases to part 170 
fees for these licenses. Because the NRC's part 170 fees are not 
assessed to a licensee or applicant on a regular basis (i.e., they 
are only assessed when a licensee or applicant requests a specific 
service from the NRC), the NRC does not believe that the impact of 
its part 170 fees warrants a fee reduction for small entities under 
part 170, in addition to the part 171 small entity fee reduction. 
Regarding export licenses, in particular, the NRC notes that 
interested parties can submit a single application for a broad 
scope, multi-year license that permits exports to multiple 
countries. Because the NRC's fees are charged per application, this 
streamlining process minimizes the fees for export applicants. 
Because a single NRC fee can cover numerous exports, and because 
there are a limited number of entities who apply for these licenses, 
the NRC does not anticipate that the part 170 export fees will have 
a significant impact on a substantial number of small entities.
    Therefore, the NRC retained the $2,300 small entity annual fee 
and the $500 lower tier small entity annual fee for FY 2007, and is 
not proposing changes to these fees in FY 2008. The NRC plans to re-
examine the small entity fees again in FY 2009.

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 fewer than 20,000, small manufacturing entities 
that have fewer than 35 employees, and educational institutions that 
are not State or publicly supported and have fewer 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 2008.

ATTACHMENT 1 TO APPENDIX A--U.S. Nuclear Regulatory Commission Small 
Entity Compliance Guide; Fiscal Year 2008

Contents

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

Introduction

    The Congressional Review Act 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 Congressional Review Act. 
Therefore, in compliance with the law, this guide has been prepared 
to assist NRC materials licensees in complying with the FY 2008 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 2008 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 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 Web site at 
http://www.nrc.gov. The form can then be accessed by selecting ``Who 
We Are,'' then ``License Fees'' and under ``Forms'' selecting NRC 
Form 526. For licensees who cannot access the NRC's Web

[[Page 8534]]

site, NRC Form 526 may be obtained through the local point of 
contact listed in the NRC's ``Materials Annual Fee Billing 
Handbook,'' NUREG/BR-0238, which is enclosed with each annual fee 
billing. Alternatively, the form may be obtained by calling the fee 
staff at 301-415-7554, or by e-mailing the fee staff at 
[email protected]. The completed form, the appropriate small entity fee, 
and the payment copy of the invoice should be mailed to the U.S. 
Nuclear Regulatory Commission, License Fee 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 $6.5 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 
$6.5 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 fewer 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, including 
a foreign 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 Businesses Not Engaged in Manufacturing
 (Average gross receipts over last 3 completed fiscal
 years):
    $350,000 to $6.5 million.........................             $2,300
    Less than $350,000...............................                500
Small Not-For-Profit Organizations (Annual Gross
 Receipts):
    $350,000 to $6.5 million.........................              2,300
    Less than $350,000...............................                500
Manufacturing entities that have an average of 500
 employees or fewer:
    35 to 500 employees..............................              2,300
    Fewer than 35 employees..........................                500
Small Governmental Jurisdictions (Including publicly
 supported educational institutions) (Population):
    20,000 to 50,000.................................              2,300
    Fewer than 20,000................................                500
Educational Institutions that are not State or
 Publicly Supported, and have 500 Employees or Fewer:
    35 to 500 employees..............................              2,300
    Fewer than 35 employees..........................                500
------------------------------------------------------------------------

Instructions for Completing NRC Small Entity Form 526

    1. Complete all items on NRC Form 526 as follows:

    (Note: Incomplete or improperly completed forms will be returned 
as unacceptable.)
    (a) Enter the license number and invoice number exactly as they 
appear on the annual fee invoice.
    (b) Enter the North American Industry Classification System 
(NAICS).
    (c) Enter the licensee's name and address exactly as they appear 
on the invoice. Annotate name and/or address changes for billing 
purposes on the payment copy of the invoice--include contact's name, 
telephone number, e-mail address, and company Web site address. 
Correcting the name and/or address on NRC Form 526 or on the invoice 
does not constitute a request to amend the license.
    (d) Check the appropriate size standard under which the licensee 
qualifies as a small entity. Check one box only. Note the following:
    (i) A licensee who is a subsidiary of a large entity, including 
foreign entities, does not qualify as a small entity. The 
calculation of a firm's size includes the employees or receipts of 
all affiliates. Affiliation with another concern is based on the 
power to control, whether exercised or not. Such factors as common 
ownership, common management and identity of interest (often found 
in members of the same family), among others, are indications of 
affiliation. The affiliated business concerns need not be in the 
same line of business (67 CFR part 59).
    (ii) Gross annual receipts, as used in the size standards, 
include all revenue received or accrued by your company from all 
sources, regardless of the form of the revenue and not solely 
receipts from licensed activities.
    (iii) NRC's size standards on small entity are based on the 
Small Business Administration's regulations (13 CFR part 121).
    (iv) The size standards apply to the licensee, not to the 
individual authorized users who may be listed in the license.
    2. If the invoice states the ``Amount Billed Represents 50% 
Proration,'' the amount due is not the prorated amount shown on the 
invoice but rather one-half of the maximum small entity annual fee 
shown on NRC Form 526 for the size standard under which the licensee 
qualifies (either $1,150 or $250) for each category billed.
    3. If the invoice amount is less than the reduced small entity 
annual fee shown on this form, pay the amount on the invoice; there 
is no further reduction. In this case, do

[[Page 8535]]

not file NRC Form 526. However, if the invoice amount is greater 
than the reduced small entity annual fee, file NRC Form 526 and pay 
the amount applicable to the size standard you checked on the form.
    4. The completed NRC Form 526 must be submitted with the 
required annual fee payment and the ``Payment Copy'' of the invoice 
to the address shown on the invoice.
    5. 10 CFR 171.16(c)(3) states licensees shall submit a new 
certification with its annual fee payment each year. Failure to 
submit NRC Form 526 at the time the annual fee is paid will require 
the licensee to pay the full amount of the invoice.
    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.''
    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 NRC 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. E8-2412 Filed 2-12-08; 8:45 am]
BILLING CODE 7590-01-P