[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
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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
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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.
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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