[Federal Register Volume 91, Number 79 (Friday, April 24, 2026)]
[Rules and Regulations]
[Pages 21937-21940]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-08024]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 91, No. 79 / Friday, April 24, 2026 / Rules
and Regulations
[[Page 21937]]
NUCLEAR REGULATORY COMMISSION
10 CFR Part 50
[NRC-2020-0071]
RIN 3150-AL35
Cost Expenditure Criteria for Research and Development
Utilization Facilities
AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
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SUMMARY: The U.S. Nuclear Regulatory Commission (NRC) is amending its
regulations to address the financial criteria used to determine whether
a utilization facility that is useful in the conduct of research and
development activities is licensed as a commercial facility under
section 103, ``Commercial Licenses,'' of the Atomic Energy Act of 1954,
as amended, or as a research and development facility under section
104, ``Medical Therapy and Research and Development.'' This rulemaking
revises the NRC's regulations to be consistent with the Nuclear Energy
Innovation and Modernization Act, enacted on January 14, 2019, and the
Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy
Act of 2024, enacted on July 9, 2024.
DATES: This final rule is effective on April 24, 2026.
ADDRESSES: Please refer to Docket ID NRC-2020-0071 when contacting the
NRC about the availability of information for this action. You may
obtain publicly available information related to this action by any of
the following methods:
Federal Rulemaking Website: Electronically at https://www.regulations.gov. Search for Docket ID NRC-2020-0071. Address
questions about NRC dockets to Helen Chang; telephone: 301-415-3228;
email: [email protected]. For technical questions, contact the
individuals listed in the FOR FURTHER INFORMATION CONTACT section of
this document.
NRC's Agencywide Documents Access and Management System
(ADAMS): You may obtain publicly available documents online in the
ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/adams.html. To begin the search, select ``Begin ADAMS Public Search.''
For problems with ADAMS, please contact the NRC's Public Document Room
(PDR) reference staff at 1-800-397-4209, at 301-415-4737, or by email
to [email protected]. The ADAMS accession number for each document
referenced (if it is available in ADAMS) is provided the first time
that it is mentioned in the SUPPLEMENTARY INFORMATION section.
NRC's PDR: The PDR, where you may examine and order copies
of publicly available documents, is open by appointment. To make an
appointment to visit the PDR, please send an email to
[email protected] or call 1-800-397-4209 or 301-415-4737, between 8
a.m. and 4 p.m. eastern time, Monday through Friday, except Federal
holidays.
FOR FURTHER INFORMATION CONTACT: Soly Soto Lugo, telephone: 301-415-
7528, email: [email protected] and Michael Balazik, telephone: 301-
415-2856, email: [email protected]. Both are staff of the U.S.
Nuclear Regulatory Commission, Washington, DC 20555-0001.
SUPPLEMENTARY INFORMATION: This rulemaking is separate from NRC's
comprehensive review and reform of its regulations in accordance with
Executive Order (E.O.) 14300, ``Ordering the Reform of the Nuclear
Regulatory Commission'' (90 FR 22587; May 29, 2025). The rulemakings
associated with that effort will comprehensively reexamine NRC
requirements. The NRC is moving forward with this final rule at this
time because it was in progress before the issuance of E.O. 14300 and
is a deregulatory action of high interest to NRC stakeholders.
Table of Contents
I. Background
II. Discussion
III. Section-by-Section Analysis
IV. Regulatory Flexibility Certification
V. Regulatory Analysis
VI. Backfitting
VII. Plain Writing
VIII. National Environmental Policy Act
IX. Paperwork Reduction Act
X. Administrative Procedure Act
XI. Executive Orders
XII. Congressional Review Act
I. Background
The NRC's regulations in part 50, ``Domestic Licensing of
Production and Utilization Facilities,'' of title 10 of the Code of
Federal Regulations (10 CFR), provide requirements and procedures for
licensing of production and utilization facilities. For production or
utilization facilities used for commercial or industrial purposes, the
NRC issues licenses under section 103, ``Commercial Licenses,'' of the
Atomic Energy Act of 1954, as amended (AEA), and 10 CFR 50.22, ``Class
103 licenses; for commercial and industrial facilities.'' Section 50.22
currently provides that a production or utilization facility is deemed
to be for industrial or commercial purposes if it is to be used so that
more than 50 percent of the annual cost of owning and operating the
facility is devoted to the production of materials, products, or energy
for sale or commercial distribution, or to the sale of services, other
than research and development or education or training. Commercial and
industrial facilities are subject to additional licensing requirements
beyond those for research and development facilities, such as review by
the Advisory Committee on Reactor Safeguards, mandatory hearings, and
fixed license terms not to exceed 40 years.
For production or utilization facilities useful in the conduct of
research and development, the NRC issues licenses under paragraph c of
section 104, ``Medical Therapy and Research and Development,'' of the
AEA and paragraph (c) of Sec. 50.21, ``Class 104 licenses; for medical
therapy and research and development facilities.'' Under the current
regulations, a production or utilization facility can be licensed as a
research and development facility only if the licensee devotes no more
than 50 percent of the annual cost of owning and operating the facility
to the commercial activities described in Sec. 50.22.
Amendments made to the AEA by the Nuclear Energy Innovation and
Modernization Act (NEIMA), enacted on January 14, 2019 (Pub. L. 115-
439; 132 Stat. 5565), and the Accelerating Deployment of Versatile,
Advanced Nuclear for Clean Energy Act of 2024
[[Page 21938]]
(ADVANCE Act), enacted on July 9, 2024 (Pub. L. 118-67, div. B, 138
Stat. 1448), changed the framework for determining whether a
utilization facility would be licensed by the NRC under section 103 or
section 104c. of the AEA. This final rule revises the NRC's regulations
to be consistent with the AEA, as amended by NEIMA and the ADVANCE Act.
II. Discussion
The NRC is amending its regulations in Sec. Sec. 50.21(c) and
50.22 to conform with changes made to section 104c. of the AEA that
apply to the issuance of class 104c licenses for utilization
facilities. This final rule does not change the cost expenditure
criterion in Sec. 50.22 for production facilities.
Section 106, ``Encouraging Private Investment in Research and Test
Reactors,'' of NEIMA amended section 104c. of the AEA in two ways.
First, NEIMA removed language in section 104c. of the AEA that provided
that the facility is not of the type specified in section 104b. of the
AEA. Second, NEIMA added language to the end of section 104c. of the
AEA providing that the NRC may issue a license for a research and
development utilization facility under section 104c. of the AEA if two
conditions were satisfied: (1) not more than 75 percent of the annual
costs of owning and operating the facility are recovered through sales
of nonenergy services, energy, or both (not counting sales of research
and development or education and training); and (2) not more than 50
percent of the annual costs are recovered through sales of energy. This
amendment to the AEA changed the framework under which the NRC
determines whether a utilization facility that is useful in the conduct
of research and development would be licensed under section 103 or
section 104c. of the AEA. Before the enactment of NEIMA, the AEA did
not specify the criteria to use when determining whether to issue a
class 103 or class 104c license for a facility--the criterion appeared
only in Sec. 50.22. Section 601 of the ADVANCE Act amended section
104c. of the AEA to remove the language that NEIMA added and to replace
it with new language focused on the percentage of the annual cost of
owning and operating a facility that is devoted to commercial
activities, similar to the criterion currently included in Sec. 50.22.
The new language added by the ADVANCE Act specifies that the NRC may
issue a license for a research and development utilization facility
under section 104c. of the AEA if two conditions are satisfied: (1) not
more than 75 percent of the annual costs of owning and operating the
facility are devoted to the sale of nonenergy services, energy, or a
combination of these activities (not counting sales of research and
development or education and training); and (2) not more than 50
percent of the annual costs of owning and operating the facility are
devoted to the sale of energy. The ADVANCE Act thus increases the
percentage of annual costs of owning and operating the facility that
may be devoted to commercial activities beyond the percentage currently
included in the NRC's regulations in Sec. 50.22 for determining
whether a utilization facility useful in the conduct of research and
development activities may be licensed under section 104c. of the AEA.
The changes to Sec. 50.22 made by this final rule align the regulation
with the changes to the AEA made by the ADVANCE Act and do not
establish new or different classes of production or utilization
facilities that are licensed under section 103 of the AEA and Sec.
50.22. The term ``class 103 license'' continues to be used for
production or utilization facilities that are licensed under section
103 of the AEA and Sec. 50.22.
III. Section-by-Section Analysis
The following paragraphs describe the changes made by this final
rule.
Section 50.21 Class 104 licenses; for medical therapy and research and
development facilities
This final rule amends paragraph (c) to implement the amendment
made by NEIMA to remove language in section 104c. of the AEA that
provided that the facility is not of the type specified in section
104b. of the AEA. Consistent with this statutory change, this final
rule amends paragraph (c) in Sec. 50.21 to remove the language that
specifies that the facility is not of the type specified in paragraph
(b) in Sec. 50.21. Paragraph (c) in Sec. 50.21 continues to specify
that the facility is not of the type specified in Sec. 50.22.
Section 50.22 Class 103 licenses; for commercial and industrial
facilities
This final rule amends Sec. 50.22 by reorganizing the section to
add paragraphs (a), (b), and (c) for the criteria for issuing class 103
licenses. Paragraph (a) retains the current list of activities covered
by a class 103 license. Paragraph (b) retains the current cost
expenditure criterion for when a production facility that is useful in
the conduct of research and development shall be licensed as an
industrial or commercial facility. Paragraph (c) contains the amended
cost expenditure criteria for when a utilization facility that is
useful in the conduct of research and development shall be licensed as
an industrial or commercial facility.
IV. Regulatory Flexibility Certification
Under the Regulatory Flexibility Act (5 U.S.C. 605(b)), the NRC
certifies that this rule does not have a significant economic impact on
a substantial number of small entities. This final rule affects the
licensing and operation of utilization facilities that are useful in
the conduct of research and development purposes, which are
predominately non-power utilization facilities. In general, the
companies, universities, and government agencies that own these
facilities do not fall within the scope of the definition of ``small
entities'' set forth in the Regulatory Flexibility Act or the size
standards established by the NRC (Sec. 2.810, ``NRC size standards'').
V. Regulatory Analysis
The NRC has prepared a final regulatory analysis for this
regulation. The analysis examines the costs and benefits of the
rulemaking alternative. The NRC estimates that the final rule results
in savings of approximately $44,000 (7 percent net present value in
2025 dollars to licensees and the NRC). To conduct this analysis, the
NRC assumed that under the regulatory baseline alternative, should the
NRC not engage in rulemaking, all 32 existing class 104c licensees
would submit license exemption requests in order to continue to abide
by the conditions of their licenses should they choose to increase the
percentage of the annual costs of owning and operating the facility
devoted to commercial activity up to the percentage allowed under the
AEA. The NRC did not analyze any additional alternatives because there
is no other way to remove the inconsistency between the NRC's
regulations and the AEA except for rulemaking.
The savings of the final rule consist of the averted costs of
licensees to prepare and submit license exemption requests and the
averted costs of the NRC to review those license exemption requests.
These averted costs are roughly split evenly between the licensees and
the NRC. The NRC expects that licensees will also incur some minor
costs to understand the final rule and to update their internal
accounting guidelines. The costs for this rule will occur immediately
after implementation of the final rule, as there are no costs to the
rule over an extended period. In addition, the NRC does not expect that
this rule will cause any entities to submit applications to
[[Page 21939]]
become class 104c licensees. The final rule also provides benefits to
regulatory efficiency because it removes the inconsistency between the
NRC's regulations in Sec. Sec. 50.21(c) and 50.22 and section 104c. of
the AEA, which may create a lack of clarity for existing and future
class 104c licensees. It also allows class 104c licensees to continue
to operate as allowed under the AEA without concern for enforcement
activities by the NRC. Based on this analysis, the NRC considers this
rule to be cost beneficial to both industry and the NRC.
VI. Backfitting
This final rule does not constitute ``backfitting'' as the term is
defined in Sec. 50.109, ``Backfitting.'' This final rule applies to
applicants or future applicants for certain licenses under 10 CFR part
50. In general, applicants for licenses under part 50 are not the
subject of the part 50 backfitting provision, with one exception not
applicable to this final rule.
The NRC is amending its rule text to be consistent with section
104c. of the AEA. As such, rulemaking to align Sec. Sec. 50.21(c) and
50.22 with section 104c. of the AEA constitutes a non-discretionary
change. The Commission's policy in Management Directive 8.4,
``Management of Backfitting, Forward Fitting, Issue Finality, and
Information Requests'' (ADAMS Accession No. ML18093B087) is that non-
discretionary changes generally do not meet the definition of
backfitting in Sec. 50.109.
VII. Plain Writing
The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal
agencies to write documents in a clear, concise, and well-organized
manner. The NRC has written this document to be consistent with the
Plain Writing Act as well as the Presidential Memorandum, ``Plain
Language in Government Writing,'' published June 10, 1998 (63 FR
31885).
VIII. National Environmental Policy Act
The NRC has determined that this final rule is the type of action
described in Sec. 51.22(c)(3)(i), which provides a categorical
exclusion for amendments to part 50 that relate to procedures for
filing and reviewing applications, amendments, or renewals for licenses
or other forms of permission. Therefore, neither an environmental
impact statement nor environmental assessment has been prepared for
this final rule.
IX. Paperwork Reduction Act
This final rule does not contain any new or amended collections of
information subject to the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.). Existing collections of information were approved by the
Office of Management and Budget (OMB), approval number 3150-0011.
Public Protection Notification
The NRC may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the document requesting
or requiring the collection displays a currently valid OMB control
number.
X. Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b)(B), the NRC finds that there is good
cause to issue this final rule without prior notice and comment. This
final rule is limited to changes to make the NRC's regulations
consistent with the amendments made to section 104c. of the AEA by
NEIMA and the ADVANCE Act. The regulatory revisions are not subject to
interpretation, and the NRC lacks any discretion regarding this change.
Accordingly, notice and public comment procedures are unnecessary. For
these same reasons, the NRC also finds good cause to waive the 30-day
delay in the effective date under 5 U.S.C. 553(d).
XI. Executive Orders
The following are Executive orders that are related to this final
rule:
A. Executive Order 12866: Regulatory Planning and Review (as amended by
Executive Order 14215, Ensuring Accountability for All Agencies)
The Office of Information and Regulatory Affairs has determined
that this final rule is not a significant regulatory action.
B. Executive Order 14154: Unleashing American Energy
The NRC has examined this final rule and has determined that it is
consistent with the policies and directives outlined in E.O. 14154.
C. Executive Order 14192: Unleashing Prosperity Through Deregulation
This action is a deregulatory action as defined by E.O. 14192.
Details on the estimated costs of this final rule can be found in
Section V, ``Regulatory Analysis,'' of this document.
D. Executive Order 14270: Zero-Based Regulatory Budgeting to Unleash
American Energy
E.O. 14270, ``Zero-Based Regulatory Budgeting to Unleash American
Energy,'' requires the NRC to insert a conditional sunset date into all
new or amended NRC regulations provided the regulations are (1)
promulgated under the AEA, the Energy Reorganization Act of 1974, as
amended, or the Nuclear Waste Policy Act of 1982, as amended; (2) not
statutorily required; and (3) not part of the NRC's permitting regime.
The NRC determined that the regulatory changes in this final rule are
limited to making the NRC's regulations consistent with statutory
amendments and constitute part of the NRC's permitting regime
authorized by statute. Therefore, the NRC views this rulemaking to be
outside the scope of E.O. 14270 and did not insert conditional sunset
dates for the regulatory changes in this final rule.
XII. Congressional Review Act
This final rule is a rule as defined in the Congressional Review
Act (5 U.S.C. 801-808). However, the Office of Management and Budget
has found that it does not meet the criteria at 5 U.S.C. 804(2).
List of Subjects in 10 CFR Part 50
Administrative practice and procedure, Antitrust, Backfitting,
Classified information, Criminal penalties, Education, Fire prevention,
Fire protection, Intergovernmental relations, Nuclear power plants and
reactors, Penalties, Radiation protection, Reactor siting criteria,
Reporting and recordkeeping requirements, Whistleblowing.
For the reasons set out in the preamble and under the authority of
the Atomic Energy Act of 1954, as amended; the Energy Reorganization
Act of 1974, as amended; and 5 U.S.C. 552 and 553, the NRC is adopting
the following amendments to 10 CFR part 50:
PART 50--DOMESTIC LICENSING OF PRODUCTION AND UTILIZATION
FACILITIES
0
1. The authority citation for part 50 continues to read as follows:
Authority: Atomic Energy Act of 1954, secs. 11, 101, 102, 103,
104, 105, 108, 122, 147, 149, 161, 181, 182, 183, 184, 185, 186,
187, 189, 223, 234 (42 U.S.C. 2014, 2131, 2132, 2133, 2134, 2135,
2138, 2152, 2167, 2169, 2201, 2231, 2232, 2233, 2234, 2235, 2236,
2237, 2239, 2273, 2282); Energy Reorganization Act of 1974, secs.
201, 202, 206, 211 (42 U.S.C. 5841, 5842, 5846, 5851); Nuclear Waste
Policy Act of 1982, sec. 306 (42 U.S.C. 10226); National
Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504
note; Sec. 109, Pub. L. 96-295, 94 Stat. 783.
Sec. 50.21 [Amended]
0
2. In Sec. 50.21, in paragraph (c), remove the phrase ``in paragraph
(b) of this section or''.
[[Page 21940]]
0
3. Revise Sec. 50.22 to read as follows:
Sec. 50.22 Class 103 licenses; for commercial and industrial
facilities.
(a) A class 103 license will be issued, to an applicant who
qualifies, for any one or more of the following: To transfer or receive
in interstate commerce, manufacture, produce, transfer, acquire,
possess, or use a production or utilization facility for industrial or
commercial purposes.
(b) In the case of a production facility that is useful in the
conduct of research and development activities of the types specified
in section 31 of the Act, such facility is deemed to be for industrial
or commercial purposes and a class 103 license is required if the
facility is to be used so that more than 50 percent of the annual costs
to the licensee of owning and operating the facility are devoted to the
production of materials, products, or energy for sale or commercial
distribution, or to the sale of services, other than research and
development or education or training.
(c) In the case of a utilization facility that is useful in the
conduct of research and development activities of the types specified
in section 31 of the Act, such facility is deemed to be for industrial
or commercial purposes and a class 103 license is required if the
facility is to be used so that:
(1) more than 75 percent of the annual costs to the licensee of
owning and operating the facility are devoted to the sale, other than
for research and development or education and training, of nonenergy
services, energy, or a combination of nonenergy services and energy; or
(2) more than 50 percent of the annual costs to the licensee of
owning and operating the facility are devoted to the sale of energy.
Dated: April 7, 2026.
For the Nuclear Regulatory Commission.
Michael King,
Executive Director for Operations.
[FR Doc. 2026-08024 Filed 4-23-26; 8:45 am]
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