Revision of Fee Schedules; Fee Recovery for FY 2008, 32386-32414 [E8-12086]
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problems in accessing the documents
located in ADAMS, contact the NRC
PDR reference staff at 1–899–397–4209,
or 301–415–4737, or by e-mail to
pdr.resource@nrc.gov.
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:
NUCLEAR REGULATORY
COMMISSION
10 CFR Parts 170 and 171
RIN: 3150–AI28
[NRC–2008–0080]
Revision of Fee Schedules; Fee
Recovery for FY 2008
Nuclear Regulatory
Commission.
ACTION: Final rule.
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AGENCY:
SUMMARY: The Nuclear Regulatory
Commission (NRC) is amending the
licensing, inspection, and annual fees
charged to its applicants and licensees.
The 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)
activities, and amounts appropriated for
generic homeland security activities.
The 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: Effective Date: August 5, 2008.
ADDRESSES: The comments received on
the proposed rule and the NRC’s work
papers that support these final changes
to 10 CFR parts 170 and 171 are
available from the following locations:
Federal e-Rulemaking Portal: Go to
https://www.regulations.gov and search
for documents filed under Docket ID
[NRC–2008–0080]. For further
information about this site, contact Ms.
Carol Gallagher, 301–415–5905; e-mail
Carol.Gallagher@nrc.gov.
NRC’s Public Document Room (PDR):
The public may examine and have
copied for a fee publicly available
documents at the NRC’s PDR, Public
File Area O–1 F21, One White Flint
North, 11555 Rockville Pike, Rockville,
Maryland.
NRC’s Agency Wide Document Access
and Management System (ADAMS):
Publicly available documents created or
received at the NRC after November 1,
1998, are available electronically at the
NRC’s electronic Reading Room at
https://www.nrc.gov/reading-rm/
adams.html. From this page, the public
can gain entry into ADAMS, which
provides text and image files of NRC’s
public documents. If you do not have
access to ADAMS or if there are
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I. Background
II. Response to Comments
III. Final Action
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical
Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis
X. Congressional Review Act
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 10 percent exclusion
from fee recovery in NRC’s annual
appropriation is to pay for the costs 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’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
approximately $760.7 million to be
billed as fees in FY 2008.
The NRC assesses two types of fees to
meet the requirements of OBRA–90, as
amended. First, license and inspection
fees, established in 10 CFR part 170
under the authority of the Independent
Offices Appropriation Act of 1952
(IOAA), 31 U.S.C. 9701, recover the
NRC’s costs of providing special
benefits to identifiable applicants and
licensees. Examples of the services
provided by the NRC for which these
fees are assessed are the review of
applications for new licenses and the
review of renewal applications, the
review of amendment requests, and
inspections. Second, annual fees
established in 10 CFR part 171 under
the authority of OBRA–90, as amended,
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recover generic and other regulatory
costs not otherwise recovered through
10 CFR part 170 fees.
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 annual fees for reactor licensees
increased. The 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. The annual
fee amounts in the FY 2008 final fee
rule are lower than those in the
proposed rule primarily due to the
increase in part 170 revenue estimates
for all fee classes.
II. Response to Comments
The NRC published the FY 2008
proposed fee rule on February 13, 2008
(73 FR 8507) to solicit public comment
on its proposed revisions to 10 CFR
parts 170 and 171. The NRC received
seven comments by the close of the
comment period (March 14, 2008). The
comments have been grouped by issue
and are addressed in a collective
response.
A. Specific Part 170 Issue
1. Direct Hours Per FTE
Comment. Some commenters
requested a better explanation for the
decrease in efficiency for the time, FY
2005 to FY 2008. NRC used 1,371 direct
hours per FTE for calculation of hourly
rates in FY 2008 compared with 1,446
direct hours per FTE in FY 2005.
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Response. The purpose of the FY 2008
fee rulemaking, as with prior year fee
rulemakings, is to establish fees in a fair
and transparent manner to recover the
required portion of the NRC’s budget.
The estimate of the direct staff hours per
FTE used for the calculation of the
hourly rate was revised based on data
retrieved from NRC’s time and labor
system data. This revised estimate
reflects changes that are taking place
with the NRC’s workforce.
In response to the comment on the
lower estimated direct staff hours per
FTE in FY 2008 as compared with FY
2005, the estimate is a reflection of the
increase in retirements of more
experienced NRC staff and the increase
in hiring of new staff to fill these
vacancies. In addition, the NRC is also
recruiting new staff due to the projected
increase in its workload, particularly as
it relates to new reactors. In the near
term, as new, less experienced staff
continue to come on board, more hours
are required for training and less staff
are available for direct work. For the FY
2008 fee rule, NRC reviewed this
estimate and updated it to 1,371 hours
as compared with the lower 1,287 direct
hours per FTE used for the FY 2007
hourly rate calculation. NRC plans to
continue to review this estimate in
future years and to update it as
appropriate.
B. Specific Part 171 Issues
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1. Annual Fee Changes
Comment. Two commenters
supported the reduction in annual fees
for uranium recovery licensees. One
commenter suggested assessing higher
fees to the uranium recovery licensees
as a deterrent to increased uranium
mining. One commenter noted that the
annual fee for the registration of devices
generally licensed is too high.
Response. In response to comments
on the changes in annual fee amounts,
NRC is rebaselining its fees in FY 2008,
as noted in the proposed fee rule. Under
this method, the annual fee amounts are
calculated based on budgeted resources
allocated to the fee class and may
fluctuate from one year to the next.
Changes in fee amounts in a fee class
reflect the allocation of resources for
regulatory activities to the fee class. As
appropriate, the NRC will continue to
recover its cost of application and
amendment reviews by billing the
identifiable applicants using the hourly
rate.
The NRC fees are set after careful
evaluation and allocation of the costs of
its budgeted activities. Policy issues
related to discouraging uranium mining
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are not within the scope of this
rulemaking.
2. Agreement State Activities
Comment. Some commenters
requested more discussion of the fee
impact to NRC licensees once additional
states beyond the Commonwealth of
Pennsylvania become Agreement States.
Response. In response to concerns
regarding decreasing numbers of NRC
licensees in light of more states
becoming Agreement States, the NRC
notes that the fee calculation
methodology considers the percentage
of licensees in Agreement States in
establishing fees for the materials users
fee class. As explained in the proposed
fee rule, the budgeted resources
providing support to Agreement States
or their licensees are included in total
surcharge costs, which are offset by nonfee recovery funding provided by
Congress. For example, if the NRC
develops a rule, guidance document, or
database or other tracking system, that
is associated with or otherwise benefits
Agreement State licensees, the costs of
these activities are prorated to the
surcharge according to the percentage of
licensees in that fee class in Agreement
States (e.g., if 82 percent of materials
users licensees are in Agreement States,
82 percent of these regulatory
infrastructure costs are included in the
surcharge). To address fairness and
equity concerns associated with
licensees paying for the cost of activities
that do not directly benefit them, as
noted previously, the FY 2001 Energy
and Water Development Appropriations
Act amended OBRA–90 to decrease the
NRC’s fee recovery amount to 90
percent beginning in FY 2005. To the
extent that the 10 percent of the budget
authority which is not fee recoverable is
insufficient to cover all surcharge costs,
these remaining surcharge costs are
spread to all licensees based on their
percentage of the budget. In FY 2008,
the NRC’s fee relief exceeds the total
surcharge cost. This excess fee relief is
used to reduce all licensees’ annual fees,
based on their percentage of the fee
recoverable budget authority.
C. Other Issues
1. Information Provided by NRC in
Support of Proposed Rule
Comment. Some commenters
requested more explanation for the
operating reactors fee increases. The
details requested include an explanation
of increases in the budget for the new
reactor work. The commenters also
wanted more explanation for the
reduction in non-fee items.
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Response. In response to the
comments on the explanation of
increases in the budget for the new
reactor work from FY 2007 to FY 2008
and decreases in non-fee items, the NRC
reiterates that the purpose of this
rulemaking is to establish fees to recover
most of the NRC’s budget, as required by
OBRA–90, as amended. The NRC’s
budget and the manner in which the
NRC carries out its activities are not
within the scope of this rulemaking. The
NRC’s budget is submitted to the Office
of Management and Budget (OMB) and
Congress for review and approval. The
Congressionally approved budget
resulting from this process contains the
NRC resources that must be allocated
and then recovered through assessment
of fees.
The purpose of the FY 2008 fee
rulemaking, as with prior year fee
rulemakings, is to establish fees in a fair
and transparent manner to recover the
required portion of the NRC’s budget.
As such, the purpose of this rulemaking
is to describe and then solicit and
evaluate comments on the allocation of
these resources for fee calculation
purposes. The rule and supporting work
papers are not intended to justify why
the budgeted resources for a given
planned activity increased by a
particular percentage. Each fiscal year,
the NRC’s Performance Budget
submitted to the Congress for review
provides the objectives of the budget
and how it supports the agency’s
Strategic Plan goals and strategies. To
assist commenters provide meaningful
comments, the NRC made available
NUREG–1100, Volume 23,
‘‘Performance Budget: Fiscal Year 2008’’
(February 2007), which discusses the
NRC’s budget for FY 2008, including the
activities to be performed in each
program. This document is available on
the NRC public Web site at https://
www.nrc.gov/reading-rm.html.
The fee rule and work papers show
the value of the approved budgeted
resources, and most importantly for fee
calculation purposes, the fee classes and
surcharge categories to which these
resources are allocated. The proposed
fee rule work papers included a separate
document for each fee class and
surcharge category to show the budget
allocations for FY 2008 and FY 2007 at
the planned activity level, thereby
making it easier to see the reasons for
any fee changes between FY 2008 and
FY 2007. For example, the proposed fee
rule stated that the power reactor annual
fee increased due to an increase in
budgeted resources for new reactor
licensing activities. The work papers
which listed the total budgeted FTE and
contract resources at the planned
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activity level showed that the budgeted
resources for one of the new reactor
licensing activities, Combined Licenses,
increased by approximately 133 FTE
and $36 million in FY 2008, as
compared with FY 2007.
The information available in the rule,
work papers, and the Performance
Budget provided the public extensive
information on the calculation of the
proposed fees. Additionally, the contact
listed in the proposed fee rule was
available during the public comment
period to answer any questions that
commenters had on the development of
the proposed fees. Therefore, the NRC
believes that ample information was
available on which to base constructive
comments on the proposed revisions to
parts 170 and 171.
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2. Changing NRC’s Small Entity Size
Standards
Comment. One commenter requested
that NRC consider revising fees for
small businesses not engaged in
manufacturing. The commenter
suggested raising the lower gross
receipts amount for the lower tier of the
small entity fee or develop a sliding
scale of the small entity fees.
Response. To alleviate the significant
impact of the annual fees on a
substantial number of small entities,
NRC established the maximum small
entity fee in FY 1991. In FY 1992, the
NRC introduced a second, lower tier to
the small entity fee. The NRC reexamined its small entity fees for the FY
2007 fee rulemaking, and did not
believe that a change to the small entity
fees was warranted. The NRC plans to
re-examine the small entity fees again in
FY 2009.
3. Need for Timely Budget Estimate
Comment. Several commenters raised
concerns about the timing of the
issuance of the fee rule. To address this
issue, these commenters suggested that
the NRC publish an estimate of fees for
the following year, coincident with
issuance of the proposed fee rule each
year.
Response. The NRC acknowledges the
concerns raised by these commenters,
and has addressed similar comments in
previous fee rulemakings. The timing of
the fee rule each year is contingent upon
when the NRC receives its
Congressionally approved budget. The
Commission makes every effort to issue
the proposed fee rule as soon as possible
after receiving its appropriation.
Because the NRC can not estimate in
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advance what its future Congressionally
approved budgets will be (i.e., proposed
budgets must be submitted to the OMB
for review before the President submits
the budget to Congress for enactment),
the NRC believes it is not practicable to
project fees based on future estimated
budgets. For example, at the time the FY
2007 proposed fee rule was published
last year, the NRC was operating under
a continuing resolution that limited the
FY 2007 funds to the NRC’s FY 2006
funding level which was approximately
$83 million lower than what the
President eventually signed into law on
February 15, 2007. Had the NRC
proposed or established preliminary
fees based on the NRC funding in FY
2006, the FY 2007 estimated fees would
have been quite different from the fees
ultimately assessed to licensees.
Even if the NRC were able to estimate
a future year budget, the annual fee
amounts are highly sensitive to other
factors, including the allocation of these
budgeted resources to license fee
classes, the numbers of licensees in a fee
class, and the proportion of total class
costs recovered from part 170. The part
170 revenue from a fee class is
particularly difficult to predict in
advance, and more so for fee classes
with small numbers of licensees, whose
annual fees are even more sensitive to
part 170 revenue estimates. Estimating
these factors in advance would likely
lead to inaccurate future fee projections,
which would be misleading to
applicants and licensees.
The NRC staff is available to meet
with interested licensees to explain the
process of the fee rulemaking and the
fee computations. To arrange a meeting,
please contact Renu Suri, telephone
301–415–0161; e-mail
Renu.Suri@nrc.gov; Office of the Chief
Financial Officer, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001.
4. Increase in the Fund Balance With
Treasury
Comment. Some commenters
requested an explanation for the
increase in the NRC’s fund balance with
the Treasury account in FY 2007 as
compared with FY 2006.
Response. The fund balance with the
Treasury represents appropriated funds
in a U.S. Treasury account that are
available to pay NRC’s current liabilities
and to finance the agency’s authorized
purchase commitments. Note #2 to the
annual financial statements, Fund
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Balance with Treasury, in the
Performance and Accountability Report,
FY 2007, NUREG–1542, Volume 13,
describes the components of this NRC
asset. The amount of the fund balance
with the Treasury has no impact on the
calculation of the fee amounts. The
OBRA–90, as amended, requires the
NRC to recover 90 percent of its budget
authority for the fiscal year through fees.
Therefore, an explanation for the
increase in the NRC’s fund balance with
the Treasury for a prior year is outside
the scope of this rulemaking. The
NUREG–1542, Volume 13, which has
more details on this fund balance is
available on the NRC public Web site at
https://www.nrc.gov/reading-rm.html.
III. Final Action
The NRC is amending 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 of
$779.1 million is further reduced for
billing adjustments and carryover from
the prior year. The FY 2008 billing
adjustments of $5 million are primarily
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. In FY 2008,
the carryover amount is approximately
$13.3 million which includes 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 1 summarizes the budget and
fee recovery amounts for FY 2008.
(Individual values may not sum to totals
due to rounding.)
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32389
TABLE 1.—BUDGET AND FEE RECOVERY AMOUNTS FOR FY 2008
[Dollars in millions]
$926.1
¥60.4
Balance ......................................................................................................................................................................................
Fee Recovery Rate for FY 2008 ......................................................................................................................................................
$865.7
× 90.0%
Total Amount to be Recovered for FY 2008 ...........................................................................................................................................
Less Carryover from FY 2007 ..........................................................................................................................................................
Less Part 171 Billing Adjustments
Unpaid FY 2008 Invoices (estimated) .......................................................................................................................................
Less Payments Received in FY 2008 for Prior Year Invoices (estimated) ..............................................................................
$779.1
¥13.3
Subtotal .....................................................................................................................................................................................
¥18.4
Amount to be Recovered Through Parts 170 and 171 Fees ..................................................................................................................
Less Estimated Part 170 Fees .........................................................................................................................................................
$760.7
¥291.8
Part 171 Fee Collections Required .........................................................................................................................................................
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Total Budget Authority .............................................................................................................................................................................
Less non-fee items ...........................................................................................................................................................................
$468.9
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 preapplication 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 (see the discussion in the NRC’s
final fee rule for FY 2006, 71 FR 30731;
May 30, 2006). 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 and
results in a reduction 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
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licensees. The NRC has updated the part
170 estimates for this final rule based on
the latest invoice data available. In total,
the part 170 estimates increased by
approximately $8 million from the FY
2008 proposed fee rule; approximately
$5 million of this increase is for the
power reactor fee class.
The NRC estimates that in FY 2008
approximately $291.8 million will be
recovered from part 170 fees. This
represents an increase of approximately
37 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 $468.9
million will be recovered through the
part 171 annual fees in FY 2008,
compared to $465.3 million for FY 2007,
an increase of less than 1 percent.
Annual fees for most licensees
decreased between the FY 2008
proposed and final fee rules primarily
due to higher part 170 fee collections.
The FY 2008 final fee rule is 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,
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2.7
¥7.8
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.
The NRC will not routinely mail the
FY 2008 final fee rule or future final fee
rules to applicants or 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 fees.resource@nrc.gov. In
addition to publication in the Federal
Register, the final rule is available on
the Internet at https://
www.regulations.gov.
The NRC is amending 10 CFR parts
170 and 171 as discussed in Sections
III.A and III.B of this document.
A. Amendments to 10 CFR Part 170:
Fees for Facilities, Materials, Import and
Export Licenses, and Other Regulatory
Services Under the Atomic Energy Act
of 1954, as Amended
The NRC is establishing a single
hourly rate of $238 to recover the full
cost of activities under part 170, and
will use this rate to calculate ‘‘flat’’
application fees. The rule also makes
minor administrative changes for
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purposes of clarification and
consistency.
The NRC is making 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 for flat fees
for certain application reviews. The
NRC is lowering the FY 2008 hourly rate
to $238 from the FY 2007 rate of $258.
This rate is applicable to all activities
for which fees are assessed under
§§ 170.21 and 170.31. The FY 2008
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
calculated by dividing the recoverable
budgeted resources (excluding direct
contract activities) by mission direct
FTE hours. The numerator, recoverable
budget resources, is the sum of (1)
mission direct program salaries and
benefits; (2) mission indirect salaries
and benefits and contract activity; and
(3) agency management and support and
Inspector General. The only budgeted
resources excluded from the hourly rate
are those for mission direct contract
activities. The denominator, mission
direct FTE hours, is derived by
multiplying budgeted mission direct
FTE by the annual direct hours per FTE.
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
increase in direct FTEs (2,079 FTE vs.
1,835 FTE) and revised higher estimate
of direct hours per FTE (1,371 hours vs.
1,287 hours).
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 the net
recoverable budget by the mission direct
FTE hours (see descriptions above), the
higher the number of direct hours per
FTE used in the calculation, the lower
the hourly rates.
The NRC is updating 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 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
lower hourly rate caused a decrease in
both the full cost fees for licensing and
inspection activities, and the 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.)
TABLE II.—FY 2008 HOURLY RATE CALCULATION
Mission Direct Program Salaries & Benefits .......................................................................................................................................
Mission Indirect Salaries & Benefits, and Contract Activity ................................................................................................................
Agency Management and Support, and IG .........................................................................................................................................
$292.6M
120.7M
266.2M
Subtotal .........................................................................................................................................................................................
Less Offsetting Receipts ......................................................................................................................................................................
$679.5M
¥0.0M
Net Recoverable Budget Included in Hourly Rate .......................................................................................................................
Mission Direct FTEs ............................................................................................................................................................................
Professional Hourly Rate (Net Recoverable Budget Included in Hourly Rate divided by Mission Direct FTE times 1,371 Annual
Direct Hours Per FTE) .....................................................................................................................................................................
$679.5M
2,079
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.
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2. ‘‘Flat’’ Application Fee Changes
As noted above, the NRC is adjusting
the current flat application fees in
§§ 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
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
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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 licensing flat fees are applicable
for fee categories K.1. through K.5. of
§ 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 § 170.31. Applications filed on or
after the effective date of the FY 2008
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$238
final fee rule will 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 § 170.31. At the time 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 10 CFR parts 170 and 171
is determined by the fee category, which
is also based on the authorized usage
contained 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
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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
§ 170.31.
In summary, the NRC is making 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 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 is making the following
changes to part 171: Using its fee relief
to reduce all licensees’ annual fees;
changing the number of NRC licensees
for some fee categories; establishing
rebaselined annual fees based on the
NRC’s FY 2008 budget authority; and
making some minor administrative
amendments. The final amendments are
described as follows:
1. Application of ‘‘Fee Relief’’
The NRC is using 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 $8.9 million. In FY 2007,
this fee relief exceeded the total
surcharge cost by approximately $9.8
million. Although the fee relief in FY
2008 is approximately $12.2 million
higher compared with FY 2007, the
amount of fee relief allocated to
licensees decreases 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.
32391
The excess fee relief for the FY 2008
final rule increased by approximately
$1.4 million compared with the
proposed primarily due to a change in
the generic decommissioning/
reclamation surcharge costs. The
amount in this surcharge category
decreased from the proposed rule due to
a smaller budget resource allocation for
the generic decommissioning activities
related to uranium recovery sites and a
higher part 170 revenue estimate for all
generic decommissioning/reclamation
activities.
As in FY 2007, the NRC is using the
$8.9 million excess 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 $77.7 million. The NRC’s total fee
relief in FY 2008 is $86.6 million,
leaving $8.9 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.)
TABLE III.—SURCHARGE COSTS
[Dollars in millions]
FY 2008
budgeted
costs
Category of costs
1. Activities not attributable to an existing NRC licensee or class of licensee:
a. International activities ...................................................................................................................................................................
b. Agreement State oversight ...........................................................................................................................................................
c. Scholarships and Fellowships ......................................................................................................................................................
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 ...................................................................................................................
b. Costs not recovered from small entities under 10 CFR 171.16(c) ..............................................................................................
3. Activities supporting NRC operating licensees and others:
a. Regulatory support to Agreement States .....................................................................................................................................
b. Generic decommissioning/reclamation (not related to the power reactor and spent fuel storage fee classes) .........................
c. In-situ Leach Uranium Extraction rulemaking and unregistered general licensees ....................................................................
$12.9
8.8
15.0
10.9
3.8
9.9
13.5
2.9
77.7
¥86.6
Fee Relief to be Allocated to All Licensees’ Annual Fees .......................................................................................................
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Total surcharge costs ................................................................................................................................................................
Less 10 percent of NRC’s FY 2008 total budget (less non-fee items) ...................................................................................................
¥8.9
Table IV shows how the NRC is
allocating the $8.9 million in fee relief
to each license fee class. (Individual
amounts may not sum to totals due to
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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
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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)
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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 (i.e.,
not an annual fee reduction), 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
(fee reduction)
Total
$M
$M
Operating Power Reactors ......................................................................
Spent Fuel Storage/Reactor Decommissioning .......................................
Test and Research Reactors ...................................................................
Fuel Facilities ...........................................................................................
Materials Users ........................................................................................
Transportation ..........................................................................................
Rare Earth Facilities ................................................................................
Uranium Recovery ...................................................................................
74
....................
....................
8
18
....................
....................
....................
2.1
....................
....................
0.2
0.5
....................
....................
....................
89.6
2.9
0.1
4.1
2.5
0.4
0.0
0.3
¥8.0
¥0.3
0.0
¥0.4
¥0.2
0.0
0.0
0.0
¥5.9
¥0.3
0.0
¥0.1
0.3
0.0
0.0
0.0
Total Surcharge ................................................................................
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Percent
100
2.8
100.0
¥8.9
¥6.0
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 NRC
approved the request. This resulted in
the transfer of approximately 650
licenses from the NRC to the
Commonwealth of Pennsylvania
effective March 31, 2008.
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 has
updated 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, as a
result 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
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for licensing and inspection activities),
because these 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
effective March 31, 2008. Because of the
effective date of March 31, 2008, which
is at the end of the first half of the FY,
the approximately 650 licensees
transferred to the Commonwealth of
Pennsylvania are subject to one-half of
their NRC annual fee for FY 2008. The
number of materials users licensees has
been revised to reflect that NRC will
still collect one-half of the annual fee
from these licensees. Also, the single
NRC rare earth license under fee
category 2.A.(2)(c) has been transferred
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 transferred to the
Commonwealth of Pennsylvania in FY
2008, this rare earth facility paid onehalf 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.
3. Revised Annual Fees
The NRC is revising its annual fees in
§ § 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
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Percent
$M
amount to be recovered through part
170 fees. The part 170 estimate for this
final rule increased by approximately
$8 million from the proposed fee rule
based on the latest invoice data
available. The total amount to be
recovered through annual fees for FY
2008 decreased to $468.9 million
compared with $477.2 million in the
proposed fee rule primarily due to the
increase in the part 170 estimate. 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
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and non-power reactors), and decreased
annual fees for five classes of licensees
(spent fuel storage/reactor
decommissioning, fuel facilities,
uranium recovery, materials users, and
transportation). 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 III.B.2 of
this document, ‘‘Agreement State
Activities,’’ NRC’s only rare earth
facility transferred to the
Commonwealth of Pennsylvania, which
became an Agreement State, effective
March 31, 2008. In FY 2008, this rare
earth facility paid 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, a higher part 170 revenue
estimate, and 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
32393
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
annual fee
Class/category of licenses
Operating Power Reactors (including Spent FuelStorage/Reactor Decommissioning annual fee) ........................
Spent Fuel Storage/Reactor Decommissioning ......................................................................................................
Test and Research Reactors (Non-power Reactors) ..............................................................................................
High Enriched Uranium Fuel Facility .......................................................................................................................
Low Enriched Uranium Fuel Facility ........................................................................................................................
UF6 Conversion Facility ...........................................................................................................................................
Conventional Mills ....................................................................................................................................................
Typical Materials Users:
Radiographers ..................................................................................................................................................
Well Loggers .....................................................................................................................................................
Gauge Users (Category 3P) .............................................................................................................................
Broad Scope Medical .......................................................................................................................................
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
final rule show in detail the allocation
of NRC’s budgeted resources for each
class of license 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
final fee rule. The sequence of the
information in the work papers now
matches the sequence in this final 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 https://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
FY 2008
annual fee
$4,043,000
159,000
76,300
4,096,000
1,237,000
811,000
18,700
$4,167,000
135,000
76,500
3,007,000
899,000
589,000
10,300
14,100
4,400
2,700
29,000
11,100
3,400
2,100
22,900
(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 § 171.16) is
approximately $13.9 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 2007
final
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Summary fee calculations
FY 2008
final
Total budgeted resources ................................................................................................................................................
Less estimated part 170 receipts ....................................................................................................................................
$32.2
¥13.6
$31.5
¥17.2
Net part 171 resources .............................................................................................................................................
Allocated generic transportation ......................................................................................................................................
Allocated surcharge .........................................................................................................................................................
18.6
+0.5
¥0.2
14.3
+0.5
¥0.1
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TABLE VI.—ANNUAL FEE SUMMARY CALCULATIONS FOR FUEL FACILITIES—Continued
[Dollars in millions]
FY 2007
final
Summary fee calculations
FY 2008
final
Billing adjustments (including carryover) .........................................................................................................................
+0.1
¥0.8
Total required annual fee recovery ..........................................................................................................................
18.9
13.9
The decrease in fuel facilities FY 2008
total budgeted cost to be recovered
compared with FY 2007 is due to lower
fuel facility resources for licensing
activities, a higher part 170 revenue
estimate, and adjustment for higher
carryover. The part 170 revenue
estimate for FY 2008 final rule increased
by approximately 1 percent compared
with the proposed rule due to increased
billing for fuel facilities. This results in
lower FY 2008 annual fees for fuel
facilities in this final 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). In
addition, the licensees are grouped
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,
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
Facility type
(fee category)
Effort factors
(percent of total)
Number of
facilities
dwashington3 on PRODPC61 with RULES2
Safety
High Enriched Uranium Fuel .......................................................................................................
Uranium Enrichment ....................................................................................................................
Low Enriched Uranium Fuel ........................................................................................................
UF6 Conversion ...........................................................................................................................
Limited Operations .......................................................................................................................
Gas Centrifuge Enrichment Demonstration .................................................................................
Hot Cell ........................................................................................................................................
The budgeted resources for safety
activities ($8,045,570) are allocated to
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each fee category based on its percent of
the total regulatory effort for safety
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2
2
3
1
1
1
1
92 (35.8)
70 (27.2)
66 (25.7)
12 (4.7)
8 (3.1)
3 (1.2)
6 (2.3)
Safeguards
102 (53.7)
40 (21.1)
21 (11.1)
7 (3.7)
3 (1.6)
15 (7.9)
2 (1.1)
activities. For example, if the total effort
factor for safety activities for all fuel
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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 ($5,948,086) 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 $137,150) and the
billing adjustment (a fee reduction in FY
2008 of $752,859) is allocated to each
fee category based on its percent of the
total regulatory effort for both safety and
32395
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
Facility type
(fee category)
FY 2008
annual fee
High Enriched Uranium Fuel ...............................................................................................................................................................
Uranium Enrichment ............................................................................................................................................................................
Low Enriched Uranium ........................................................................................................................................................................
UF6 Conversion ...................................................................................................................................................................................
Gas Centrifuge Enrichment Demonstration .........................................................................................................................................
Limited Operations Facility ..................................................................................................................................................................
Hot Cell (and others) ...........................................................................................................................................................................
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 § 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
$3,007,000
1,705,000
899,000
589,000
558,000
341,000
248,000
2.A.(2)(a), 2.A.(2)(b), 2.A.(3), 2.A.(4),
2.A.(5) and 18.B., under § 171.16), is
approximately $0.46 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
final
Summary fee calculations
FY 2008
final
$1.32
¥0.61
$2.56
¥2.02
Net part 171 resources .............................................................................................................................................
Allocated generic transportation ......................................................................................................................................
Allocated surcharge .........................................................................................................................................................
0.71
+N/A
¥0.02
0.54
+N/A
¥0.03
Billing adjustments (including carryover) .........................................................................................................................
Total required annual fee recovery ..........................................................................................................................
dwashington3 on PRODPC61 with RULES2
Total budgeted resources ................................................................................................................................................
Less estimated part 170 receipts ....................................................................................................................................
+0.00
0.69
¥0.06
0.46
The decrease in the total required
annual fee recovery in FY 2008
compared with FY 2007 is mainly due
to a higher part 170 revenue estimate
and higher billing adjustment partially
offset by an increase in uranium
recovery licensing and inspection
resources. The budgeted resources for
the final rule increased by
approximately $0.9 million compared
with the proposed rule due to change in
allocations to the uranium recovery fee
class. More of FY 2008 resources are
being used to support licensing work for
new uranium recovery facilities and less
for generic decommissioning activities
related to uranium recovery sites.
Therefore, resources from the surcharge
category, generic decommissioning/
reclamation, were shifted to the
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uranium recovery fee class for the final
rule. This increase in the uranium
recovery budget allocations was offset
by a higher part 170 revenue estimate
compared with the proposed rule. The
part 170 revenue estimate increased by
$1.07 million compared with the
proposed rule due to increased billing
for review of applications for new
uranium recovery facilities. The annual
fee in the final rule decreased compared
with the proposed rule for the DOE and
non DOE licensees in the uranium
recovery fee class primarily due to
higher part 170 revenue estimate.
Of the required annual fee collections,
$398,000 (rounded) is assessed to DOE
for licensing its Uranium Mill Tailings
Radiation Control Act (UMTRCA) sites
under fee category 18.B. The remaining
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$58,000 (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 sites) and
the other licensees in this fee class. In
the FY 2007 final rule (72 FR 31414;
June 6, 2007), the NRC changed this
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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 $484,581, less $359,471
specifically budgeted for Title I
activities, is allocated to DOE’s
UMTRCA sites. 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 allocation
percentage of budgeted resources for
licensing the DOE is based on the
reduced effort expended for DOE
UMTRCA sites.
The annual fee assessed to DOE is the
sum of the resources 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 budgeted resources,
surcharge, and generic/other costs
allocated to this fee class are assessed to
the other NRC uranium recovery
licensees. 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 ..................................................................................................................................................
40 percent of generic/other uranium recovery budgeted costs ...................................................................................................
40 percent of uranium recovery surcharge ..................................................................................................................................
$359,471
50,044
¥11,585
Total Annual Fee Amount for DOE (rounded) ......................................................................................................................
Annual Fee Amount for Other Uranium Recovery Licenses:
60 percent of generic/other uranium recovery budgeted costs less the amounts specifically budgeted for Title I activities .....
60 percent of uranium recovery surcharge ..................................................................................................................................
75,066
¥17,377
Total Annual Fee Amount for Other Uranium Recovery Licenses .......................................................................................
57,688
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
$58,000 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 (excluding 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. Note that 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
398,000
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:
TABLE XI.—EFFORT FACTORS FOR URANIUM RECOVERY LICENSES
Total effort factor
Number of
licensees
Fee category
dwashington3 on PRODPC61 with RULES2
Class I (conventional mills) ..............................................................................................
Class II (solution mining) .................................................................................................
11e.(2) disposal incidental to existing tailings sites ........................................................
Uranium water treatment .................................................................................................
The annual fee per licensee is
calculated by dividing the total
allocated budgeted resources for the fee
category by the number of licensees in
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that fee category as summarized in
Table XII. Applying these factors to the
approximately $58,000 in budgeted
costs to be recovered from non-DOE
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Effort factor
per licensee
1
3
1
1
75
75
75
45
Value
Percent
total
75
225
75
45
uranium recovery licensees results in
the following annual fees for FY 2008:
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TABLE XII.—ANNUAL FEES FOR URANIUM RECOVERY LICENSEES (OTHER THAN DOE)
FY 2008
annual fee
Facility type
Class I (conventional mills) ..................................................................................................................................................................
Class II (solution mining) .....................................................................................................................................................................
11e.(2) disposal ...................................................................................................................................................................................
11e.(2) disposal incidental to existing tailings sites ............................................................................................................................
Uranium water treatment .....................................................................................................................................................................
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 $419.3 million in
budgeted costs to be recovered through
$10,300
10,300
N/A
10,300
6,200
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]
Summary fee calculations
FY 2007 final
FY 2008 final
Total budgeted resources ........................................................................................................................................
Less estimated part 170 receipts ............................................................................................................................
$588.6
¥180.7
$698.8
¥258.1
Net part 171 resources .....................................................................................................................................
Allocated generic transportation ..............................................................................................................................
Allocated surcharge .................................................................................................................................................
Billing adjustments (including carryover) .................................................................................................................
407.9
+1.0
¥6.0
+1.1
440.7
+1.0
¥5.9
¥16.5
Total required annual fee recovery ..................................................................................................................
404.0
419.3
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
$4,032,000 per reactor. Additionally,
each power reactor licensed to operate
is assessed the FY 2008 spent fuel
storage/reactor decommissioning annual
fee of $135,000. This results in a total
FY 2008 annual fee of $4,167,000 for
each power reactor licensed to operate.
The part 170 revenue estimate for the
final rule increased by approximately
$5.3 million compared with the
proposed rule due to increased billings
for work related to new applications. As
a result, the annual fee for each power
reactor decreased by approximately 2
percent in the final rule.
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. The annual fees for power reactors
are presented in § 171.15.
d. Spent Fuel Storage/Reactor
Decommissioning
For FY 2008, budgeted costs of
approximately $16.6 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.)
TABLE XIV.—ANNUAL FEE SUMMARY CALCULATIONS FOR THE SPENT FUEL STORAGE/REACTOR DECOMMISSIONING FEE
CLASS
[Dollars in millions]
FY 2007
final
Summary fee calculations
FY 2008
final
dwashington3 on PRODPC61 with RULES2
Total budgeted resources ................................................................................................................................................
Less estimated part 170 receipts ....................................................................................................................................
$23.9
¥4.2
$22.4
¥5.3
Net part 171 resources .............................................................................................................................................
Allocated generic transportation ......................................................................................................................................
Allocated surcharge .........................................................................................................................................................
Billing adjustments (including carryover) .........................................................................................................................
19.7
+0.3
¥0.4
+0.0
17.1
+0.2
¥0.3
¥0.5
Total required annual fee recovery ..........................................................................................................................
19.6
16.6
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The required annual fee recovery
amount is divided equally among 123
licensees, resulting in a FY 2008 annual
fee of $135,000 per licensee. The total
required annual fee 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. The
part 170 revenue estimate for the final
rule increased by approximately 13
percent due to increased billings for
spent fuel storage, which resulted in a
lower annual fee compared with the
proposed rule.
e. Test and Research Reactors (Nonpower 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
final
Summary fee calculations
FY 2008
final
Total budgeted resources ................................................................................................................................................
Less estimated part 170 receipts ....................................................................................................................................
$0.85
¥0.55
$0.99
¥0.66
Net part 171 resources .............................................................................................................................................
Allocated generic transportation ......................................................................................................................................
Allocated surcharge .........................................................................................................................................................
Billing adjustments (including carryover) .........................................................................................................................
0.30
+0.01
¥0.01
+0.00
0.33
+0.01
¥0.01
¥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 $76,500 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 a 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 authorizes the NRC to bill
Federal facilities for part 170 services.
f. Rare Earth Facilities
As discussed previously in Section
III.B.2 of this document, ‘‘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 transferred
to the Agreement State, Commonwealth
of Pennsylvania, effective March 31,
2008. In FY 2008, this rare earth facility
paid 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.) The following fee
categories under § 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.
TABLE XVI.—ANNUAL FEE SUMMARY CALCULATIONS FOR MATERIALS USERS
[Dollars in millions]
FY 2007
final
Summary fee calculations
FY 2008
final
$25.8
¥1.2
$22.8
¥2.0
Net part 171 resources .............................................................................................................................................
Allocated generic transportation ......................................................................................................................................
Allocated surcharge .........................................................................................................................................................
Billing adjustments (including carryover) .........................................................................................................................
24.6
+0.9
+0.3
+0.0
20.8
+0.9
+0.3
¥0.5
Total required annual fee recovery ..........................................................................................................................
dwashington3 on PRODPC61 with RULES2
Total budgeted resources ................................................................................................................................................
Less estimated part 170 receipts ....................................................................................................................................
25.9
21.4
The annual fee for materials users
decreased in the final rule compared
with the proposed rule due to a decrease
in allocated generic transportation
charge. The generic transportation
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charge decreased primarily due to
higher part 170 revenues for the
Transportation fee class. See further
discussion of the decrease in generic
transportation resources in Section
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III.B.3.h. 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
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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 became
effective March 31, 2008, the licenses
that transferred to the Commonwealth of
Pennsylvania are subject to one-half of
the NRC annual fees in FY 2008.
To equitably and fairly allocate the FY
2008 $21.4 million (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 $14.7 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
$226,000 in fee relief allocated to the
materials users fee class (see Section
III.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 § 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
final
Summary fee calculations
FY 2008
final
$5.0
¥1.2
$5.7
¥2.3
Net part 171 resources .............................................................................................................................................
dwashington3 on PRODPC61 with RULES2
Total budgeted resources ................................................................................................................................................
Less estimated part 170 receipts ....................................................................................................................................
3.8
3.4
The net FY 2008 budgeted resources
for generic transportation activities,
including those to support DOE
Certificates of Compliance (CoCs), are
$3.4 million. The net part 171 resources
for these activities in the FY 2008 final
rule decreased by $0.6 million
compared with the proposed rule. This
decrease in the final rule is primarily
due to approximately 35 percent
increase in part 170 revenue estimate as
a result of increased billings for
transportation-related reviews. 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
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annual fees for license fee classes. NRC
will continue to assess a separate annual
fee under § 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
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 § 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 decreased slightly compared
to FY 2007 due to the decrease in net
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budgeted resources for transportation.
For the final fee rule, the generic
transportation cost allocation to the
other fee classes decreased compared
with the proposed rule due to higher
part 170 estimate for generic
transportation activities.
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.
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TABLE XVIII.—DISTRIBUTION OF GENERIC TRANSPORTATION RESOURCES, FY 2008
[Dollars in millions]
Number CoCs
benefiting fee
class (or DOE)
License fee class/DOE
(Percentage of
total CoCs
percent)
Allocated
generic
transportation
resources
128.0
31.0
37.0
9.0
0.4
18.0
32.6
100.0
24.2
28.9
7.0
0.3
14.1
25.4
$3.41
0.83
0.99
0.24
0.01
0.48
0.87
Total .............................................................................................................................................
DOE .............................................................................................................................................
Operating Power Reactors ..........................................................................................................
Spent Fuel Storage/Reactor Decommissioning ..........................................................................
Test and Research Reactors .......................................................................................................
Fuel Facilities ...............................................................................................................................
Materials Users ............................................................................................................................
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 due to the Commonwealth of
Pennsylvania becoming an Agreement
State effective March 31, 2008;
3. Establishing rebaselined annual
fees for FY 2008; and
4. Making certain administrative
changes for purposes of clarification and
consistency.
4. Administrative Amendments
dwashington3 on PRODPC61 with RULES2
The NRC will continue to assess DOE
an annual fee based on the part 71 CoCs
it holds, and not allocate these DOErelated resources to other licensees’
annual fees, because these resources
specifically support DOE. Note that
DOE’s annual fee includes a reduction
for the fee relief (see Section III.B.1,
’Application of ‘‘Fee Relief’’’, of this
document), resulting in a total annual
fee of $719,000 for FY 2008. The fee
decrease from last year is primarily due
to a decrease in the number of DOE
CoCs. The annual fee for DOE in the
final rule decreased by approximately
18 percent compared with the proposed
rule due to higher part 170 estimate.
IV. Voluntary Consensus Standards
The NRC is adding program codes
next to the materials users fee categories
in § 171.16. At the time 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 § 171.16.
The NRC is modifying the second
sentence of footnote 1 in § 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
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. In this final rule, the NRC
is amending 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
OBRA–90, as amended. This action does
not constitute the establishment of a
standard that contains generally
applicable requirements.
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V. Environmental Impact: Categorical
Exclusion
The NRC has determined that this
final 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 final regulation.
By its very nature, this regulatory action
does not affect the environment and,
therefore, no environmental justice
issues are raised.
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VI. Paperwork Reduction Act
Statement
This final rule does not contain
information collection requirements
and, therefore, is not subject to the
requirements of the Paperwork
Reduction Act of 1995, 44 U.S.C. 3501
et seq.
VII. Regulatory Analysis
With respect to 10 CFR part 170, this
final 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,
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Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
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 lowlevel 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 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, amounts
appropriated for WIR, and amounts
appropriated for generic homeland
security activities through fees. To
comply with this statutory requirement
and in accordance with 10 CFR 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
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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 OBRA–90,
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 final rule establishes 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
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
final 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
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32401
apply to this final rule and that a backfit
analysis is not required for this final
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.
X. Congressional Review Act
In accordance with the Congressional
Review Act of 1996, 5 U.S.C. 801–808,
the NRC has determined that this action
is a major rule and has verified the
determination with the Office of
Information and Regulatory Affairs of
the Office of Management and Budget.
List of Subjects
10 CFR Part 170
Byproduct material, Import and
export licenses, Intergovernmental
relations, Non-payment penalties,
nuclear materials, nuclear power plants
and reactors, source material, special
nuclear material.
10 CFR Part 171
Annual charges, byproduct material,
holders of certificates, registrations,
approvals, intergovernmental relations,
non-payment penalties, nuclear
materials, nuclear power plants and
reactors, source material, special
nuclear material.
I 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 adopting 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:
I
Authority: Sec. 9701, Pub. L. 97–258, 96
Stat. 1051 (31 U.S.C. 9701); sec. 301, Pub. L.
92–314, 86 Stat. 227 (42 U.S.C. 2201w); sec.
201, Pub. L. 93–438, 88 Stat. 1242, as
amended (42 U.S.C. 5841); sec. 205a, Pub. L.
101–576, 104 Stat. 2842, as amended (31 U.S.
C. 901, 902); sec. 1704, 112 Stat. 2750 (44
U.S.C. 3504 note); sec. 623, Pub. L. 109–58,
119 Stat. 783 (42 U.S.C. 2201(w)); sec. 651(e),
Pub. L. 109–58, 119 Stat. 806–810 (42 U.S.C.
2014, 2021, 2021b, 2111).
2. Section 170.20 is revised to read as
follows:
I
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Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
§ 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 §§ 170.21 and 170.31
will be calculated using the professional
staff-hour rate of $238 per hour.
I 3. In § 170.21, in the table, fee
category K is revised to read as follows:
§ 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, 2
Facility categories and type of fees
*
*
*
*
*
*
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 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 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 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 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 ..........................................................................................................................................
*
$15,500
9,100
3,800
2,400
720
1 Fees
will not be charged for orders related to civil penalties or other civil sanctions issued by the Commission under § 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 § 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 § 170.20.
*
*
*
*
*
*
*
4 Imports only of major components for end-use at NRC–licensed reactors are now authorized under NRC general import license.
4. In § 170.31, the table is revised to
read as follows:
I
§ 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]
dwashington3 on PRODPC61 with RULES2
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 Enriched Uranium) [Program Code(s): 21130] ................................................
(b) Low Enriched Uranium in Dispersible Form 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 Code(s): 21310, 21320] .................................................................................
(b) Gas centrifuge enrichment demonstration facilities ...........................................................................................................
(c) Others, including hot cell facilities ......................................................................................................................................
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Full Cost.
Full Cost.
Full Cost.
Full Cost.
Full Cost.
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SCHEDULE OF MATERIALS FEES—Continued
[See footnotes at end of table]
dwashington3 on PRODPC61 with RULES2
Category of materials licenses and type of fees 1
Fee 2, 3
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].
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] ....................................................................................................................................
D. All other special nuclear material licenses, except licenses authorizing special nuclear material in unsealed form in a combination that would constitute a critical quantity, as defined in § 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, 22120, 22131, 22136, 22150, 22151, 22161, 22163, 22170, 23100,
23300, 23310].
E. Licenses or certificates for construction and 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].
(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] .......................................................................................................................
(b) Class II facilities [Program Code(s): 11500] ......................................................................................................................
(c) Other facilities [Program Code(s): 11700] .........................................................................................................................
(3) Licenses that authorize the receipt of byproduct material, as defined in § 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 byproduct material, as defined in § 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 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] ....................................................................................................................................
C. All other source material licenses.
Application [Program Code(s): 11200, 11220, 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, 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, 22135, 22162] ................................................................................................
C. Licenses issued under §§ 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 § 170.11(a)(4). These licenses are covered by fee Category 3.D.
Application [Program Code(s): 02500, 02511, 02513] ............................................................................................................
D. Licenses and approvals issued under §§ 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 §§ 32.72 and/or 32.74 of this chapter to nonprofit educational institutions
whose processing or manufacturing is exempt under § 170.11(a)(4).
Application [Program Code(s): 02512, 02514] ........................................................................................................................
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] ........................................................................................................................
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] ....................................................................................................................................
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] ....................................................................................................................................
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] ....................................................................................................................................
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Full Cost.
$1,100.
2,200.
Full Cost.
Full Cost.
Full
Full
Full
Full
Cost.
Cost.
Cost.
Cost.
Full Cost.
Full Cost.
260.
9,400.
11,200.
4,200.
7,400.
4,100.
2,700.
5,600.
13,300.
9,700.
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SCHEDULE OF MATERIALS FEES—Continued
[See footnotes at end of table]
Category of materials licenses and type of fees 1
4.
dwashington3 on PRODPC61 with RULES2
5.
6.
7.
Fee 2, 3
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, 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, 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] ........................................................................................................................
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, 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] ....................................................................................................................................
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, 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] ........................................................................................................................
P. All other specific byproduct material licenses, except those in Categories 4.A. through 9.D.
Application [Program Code(s): 02400, 02410, 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 ..............................................................................................................................................................................
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] ....................................................................................................................................
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] ....................................................................................................................................
S. Licenses for production of accelerator-produced radionuclides.
Application [Program Code(s): 03210] ....................................................................................................................................
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,
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] ....................................................................................................................................
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] ....................................................................................................................................
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, 03112] ............................................................................................................
B. Licenses for possession and use of byproduct material for field flooding tracer studies.
Licensing [Program Code(s): 03113] .......................................................................................................................................
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] ....................................................................................................................................
Medical licenses:
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9,700.
1,700.
1,000.
9,400.
3,300.
6,100.
4,500.
1,300.
270.
550.
1,300.
7,400.
Full Cost.
2,900.
4,300.
1,600.
Full Cost.
19,000.
32405
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
SCHEDULE OF MATERIALS FEES—Continued
[See footnotes at end of table]
dwashington3 on PRODPC61 with RULES2
Category of materials licenses and type of fees 1
Fee 2, 3
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] ........................................................................................................................
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] ....................................................................................................................................
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, 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] ....................................................................................................................................
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 ........................................................................................................................................................
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 ........................................................................................................................................................
C. Safety evaluation of sealed sources containing byproduct material, source material, or special nuclear material, except reactor fuel, for commercial distribution.
Application—each source ........................................................................................................................................................
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 ........................................................................................................................................................
10. Transportation of radioactive material:
A. Evaluation of casks, packages, and shipping containers.
1. Spent Fuel, High-Level Waste, and plutonium air packages .....................................................................................................
2. Other Casks ................................................................................................................................................................................
B. Quality assurance program approvals issued under part 71 of this chapter.
1. Users and Fabricators.
Application ...............................................................................................................................................................................
Inspections ...............................................................................................................................................................................
2. Users.
Application ...............................................................................................................................................................................
Inspections ...............................................................................................................................................................................
C. Evaluation of security plans, route approvals, route surveys, and transportation security devices (including immobilization
devices).
11. Review of standardized spent fuel facilities ....................................................................................................................................
12. Special projects:
Including approvals, preapplication/licensing activities, and inspections .......................................................................................
13. A. Spent fuel storage cask Certificate of Compliance .....................................................................................................................
B. Inspections related to storage of spent fuel under § 72.210 of this chapter ....................................................................................
14. A. Byproduct, source, or special nuclear material licenses and other approvals authorizing decommissioning, decontamination, reclamation, or site restoration activities under parts 30, 40, 70, 72, and 76 of this chapter.
B. Site-specific decommissioning activities associated with unlicensed sites, regardless of whether or not the sites have been
previously licensed.
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 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 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 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.
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10,400.
7,400.
2,300.
550.
19,500.
19,500.
2,700.
910.
Full Cost.
Full Cost.
4,400.
Full Cost.
4,400.
Full Cost.
Full Cost.
Full Cost.
Full
Full
Full
Full
Cost.
Cost.
Cost.
Cost.
Full Cost.
15,500.
9,100.
3,800.
32406
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
SCHEDULE OF MATERIALS FEES—Continued
[See footnotes at end of table]
Category of materials licenses and type of fees 1
Fee 2, 3
dwashington3 on PRODPC61 with RULES2
Application—new license, or amendment; or 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 ....................................................................................................................................................................
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 license exemption request ..............................................................................
G. Application for export of Category 1 materials requiring Executive Branch review, Commission review, and/or governmentto-government consent.
Application—new license, or amendment; or 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 license exemption request ..............................................................................
I. Application for export of Category 1 material requiring government-to-government consent
Application—new license, or amendment; or 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 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 license exemption request ..............................................................................
L. Application for the export of Category 2 materials.
Application—new license, or amendment; or license exemption request ..............................................................................
Category 1 Imports:
M. Application for the import of Category 1 material requiring Commission review.
Application—new license, or amendment; or license exemption request ..............................................................................
N. Application for the import of Category 1 material.
Application—new license, or amendment; or license exemption request ..............................................................................
Category 2 Imports:
O. Application for the import of Category 2 material.
Application—new license, or amendment; or 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 license exemption request ..............................................................................
Q. Application for the import of Category 1 material with agent and multiple licensees.
Application—new license, or amendment; or 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 ....................................................................................................................................................................
16. Reciprocity:
Agreement State licensees who conduct activities under the reciprocity provisions of 10 CFR 150.20.
Application ...............................................................................................................................................................................
17. Master materials licenses of broad scope issued to Government agencies:
Application ...............................................................................................................................................................................
18. Department of Energy
A. Certificates of Compliance. Evaluation of casks, packages, and shipping containers (including spent fuel, high-level waste,
and other casks, and plutonium air packages).
B. Uranium Mill Tailings Radiation Control Act (UMTRCA) activities ............................................................................................
2,400.
720.
15,500.
9,100.
5,700.
4,800.
15,500.
9,100.
4,300.
4,500.
3,800.
3,300.
5,200.
4,300.
720.
1,400.
22,000.
Full Cost.
Full Cost.
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 § 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.
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Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
32407
(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 § 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
§ 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
§ 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 § 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:
I
Authority: Sec. 7601, Pub. L. 99–272, 100
Stat. 146, as amended by sec. 5601, Pub. L.
100–203, 101 Stat. 1330 as amended by sec.
3201, Pub. L. 101–239, 103 Stat. 2132, as
amended by sec. 6101, Pub. L. 101–508, 104
Stat. 1388, as amended by sec. 2903a, Pub.
L. 102–486, 106 Stat. 3125 (42 U.S.C. 2213,
2214), and as amended by Title IV, Pub. L.
109–103, 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, 2021b, 2111).
6. In § 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:
I
§ 171.15 Annual fees: Reactor licenses
and independent spent fuel storage
licenses.
dwashington3 on PRODPC61 with RULES2
*
*
*
*
*
(b)(1) The FY 2008 annual fee for each
operating power reactor which must be
collected by September 30, 2008, is
$4,032,000.
(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
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(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 $135,000.
(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
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(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 ¥$5.9 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 ¥$57,000. This
amount is calculated by dividing the
total operating power reactor surcharge
(¥$5.9 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
¥$258,000. 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
¥$2,097. 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 § 171.11(a), are as follows:
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32408
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
Research reactor ..........................
Test reactor ..................................
$76,500
76,500
7. In § 171.16, paragraphs (c), (d), and
the introductory text of paragraph (e) are
revised to read as follows:
I
§ 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 ...............................................................................................................................................................
Less than $350,000 ......................................................................................................................................................................
Small Not-For-Profit Organizations (Annual Gross Receipts):
$350,000 to $6.5 million ...............................................................................................................................................................
Less than $350,000 ......................................................................................................................................................................
Manufacturing entities that have an average of 500 employees or fewer:
35 to 500 employees ....................................................................................................................................................................
Fewer than 35 employees ............................................................................................................................................................
Small Governmental Jurisdictions (Including publicly supported educational institutions) (Population):
20,000 to 50,000 ..........................................................................................................................................................................
Fewer than 20,000 .......................................................................................................................................................................
Educational Institutions that are not State or Publicly Supported, and have 500 Employees or Fewer:
35 to 500 employees ....................................................................................................................................................................
Fewer than 35 employees ............................................................................................................................................................
(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
$2,300
500
2,300
500
2,300
500
2,300
500
2,300
500
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, 2, 3
dwashington3 on PRODPC61 with RULES2
Category of materials licenses
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 Enriched Uranium) [Program Code(s): 21130] ................................................
(b) Low Enriched Uranium in Dispersible Form 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 Code(s): 21310, 21320] .................................................................................
(b) Gas centrifuge enrichment demonstration facilities ...........................................................................................................
(c) Others, including hot cell facilities ......................................................................................................................................
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].
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 [Program Code(s): 22140].
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 § 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 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].
(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): 11100] ....................................................................................................................
(b) Class II facilities 4 [Program Code(s): 11500] ....................................................................................................................
(c) Other facilities 4 [Program Code(s): 11700] .......................................................................................................................
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06JNR2
$3,007,000
899,000
341,000
558,000
248,000
N/A 11
1,600
4,500
1,705,000
589,000
10,300
10,300
N/A 5
32409
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC—Continued
[See footnotes at end of table]
Annual
fees 1, 2, 3
dwashington3 on PRODPC61 with RULES2
Category of materials licenses
(3) Licenses that authorize the receipt of byproduct material, as defined in § 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 byproduct material, as defined in § 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 material related to removal of contaminants (source material) from
drinking water.
B. Licenses that authorize only the possession, use and/or installation of source material for shielding [Program Code(s):
11210].
C. All other source material licenses [Program Code(s): 11200, 11220, 11221, 11230, 11300, 11800, 11810] .........................
3. Byproduct material:
A. Licenses of broad scope for 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 [Program Code(s): 03211,
03212, 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 [Program Code(s): 03214, 03215, 22135,
22162].
C. Licenses issued under §§ 32.72 and/or 32.74 of this chapter authorizing the processing or manufacturing and distribution
or redistribution of radiopharmaceuticals, generators, reagent kits and/or sources and devices containing byproduct 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 § 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 §§ 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 §§ 32.72 and 32.74 of this chapter to nonprofit educational institutions whose
processing or manufacturing is exempt under § 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 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 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 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 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].
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, 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 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 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 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 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 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 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 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 under part 31 of this chapter .................................................................................
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N/A 5
10,300
6,200
590
10,200
22,900
6,500
9,200
5,200
3,100
6,100
24,400
8,700
8,100
1,900
1,500
11,600
4,200
6,500
11,100
2,100
N/A 13
32410
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC—Continued
[See footnotes at end of table]
Annual
fees 1, 2, 3
dwashington3 on PRODPC61 with RULES2
Category of materials licenses
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 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 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-produced radionuclides [Program Code(s): 03210] .....................................................
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,
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 [Program Code(s): 03234].
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 [Program Code(s): 03232].
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 [Program Code(s): 03110, 03111, 03112].
B. Licenses for possession and use of byproduct material for field flooding tracer studies [Program Code(s): 03113] ..............
6. Nuclear laundries:
A. Licenses for commercial collection and laundry 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 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 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, 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].
8. Civil defense:
A. Licenses for possession and use of byproduct 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 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 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 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 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 plutonium air packages ..............................................................................................
2. Other Casks .........................................................................................................................................................................
B. Quality assurance program approvals issued under part 71 of this chapter.
1. Users and Fabricators .........................................................................................................................................................
2. Users ...................................................................................................................................................................................
C. Evaluation of security plans, route approvals, route surveys, and transportation security devices (including immobilization
devices).
11. Standardized spent fuel facilities .....................................................................................................................................................
12. Special Projects ...............................................................................................................................................................................
13. A. Spent fuel storage cask Certificate of Compliance .....................................................................................................................
B. General licenses for storage of spent fuel under 10 CFR 72.210
14. Decommissioning/Reclamation:
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1,700
2,100
8,400
N/A 5
9,300
7,200
3,400
N/A 5
20,600
10,500
22,900
3,900
1,700
14,700
14,700
2,000
700
N/A 6
N/A 6
N/A 6
N/A 6
N/A 6
N/A 6
N/A 6
N/A 6
N/A 12
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
32411
SCHEDULE OF MATERIALS ANNUAL FEES AND FEES FOR GOVERNMENT AGENCIES LICENSED BY NRC—Continued
[See footnotes at end of table]
Annual
fees 1, 2, 3
Category of materials licenses
15.
16.
17.
18.
A. Byproduct, source, or special nuclear material licenses and other approvals authorizing decommissioning, decontamination, reclamation, or site restoration activities under parts 30, 40, 70, 72, and 76 of this chapter.
B. Site-specific decommissioning activities associated with unlicensed sites, whether or not the sites have been previously licensed.
Import and Export licenses ..............................................................................................................................................................
Reciprocity .......................................................................................................................................................................................
Master materials licenses of broad scope issued to Government agencies ..................................................................................
Department of Energy:
A. Certificates of Compliance .........................................................................................................................................................
B. Uranium Mill Tailings Radiation Control Act (UMTRCA) activities ............................................................................................
N/A 7
N/A 7
N/A 8
N/A 8
225,000
719,000 10
398,000
dwashington3 on PRODPC61 with RULES2
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
§ 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 § 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 § 171.15(c).
12 See § 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.)
(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 16th day
of May, 2008.
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For the Nuclear Regulatory Commission.
J.E. Dyer,
Chief Financial Officer.
Note: THIS APPENDIX WILL NOT
APPEAR IN THE CODE OF FEDERAL
REGULATIONS.
Appendix A to This Final Rule—
Regulatory Flexibility Analysis for the
Final 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
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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 § 171.16(c) of this
final 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
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Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
dwashington3 on PRODPC61 with RULES2
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 rebaselining its part
171 annual fees in FY 2008. Rebaselining fees
results in increased annual fees compared to
FY 2007 for the power reactors and nonpower 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 III.B.2., ‘‘Agreement State Activities’’,
of this document, the only rare earth facility
license transferred to the Commonwealth of
Pennsylvania when it became 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 Small Business Regulatory
Enforcement Fairness Act of 1996 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 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 twoperson licensee as for a large firm with
thousands of employees.
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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 wellloggers, 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
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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 of the 25 percent increase, the
maximum small entity annual fee increased
from $1,800 to $2,300 in FY 2000. Although
the maximum annual fee for small entities
increased from $1,800 to $2,300, the total fee
for many small entities was reduced because
they no longer paid part 170 fees for services.
The costs not recovered from small entities
were 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
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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
are offset by the 10 percent fee relief
provided to NRC by the Congress. 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
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tier small entity annual fee for FY 2007, and
is not changing 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, as amended, 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 Small Business Regulatory
Enforcement Fairness Act requires all Federal
agencies to prepare a written guide for which
the agency Prepares a final regulatory
flexibility analysis. The NRC has prepared
such an analysis. 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 https://www.nrc.gov. The
form can then be accessed by selecting
‘‘Business with NRC,’’ then ‘‘License Fees’’
and under ‘‘Forms’’ selecting NRC Form 526.
For licensees who cannot access the NRC’s
Web site, NRC Form 526 may be obtained
through the local point of contact listed in
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32413
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 fees@nrc.gov. 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
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
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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Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules and Regulations
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
dwashington3 on PRODPC61 with RULES2
Small Businesses Not Engaged in Manufacturing (Average gross receipts over last 3 completed fiscal years):
$350,000 to $6.5 million ...................................................................................................................................................................
Less than $350,000 ..........................................................................................................................................................................
Small Not-For-Profit Organizations (Annual Gross Receipts):
$350,000 to $6.5 million ...................................................................................................................................................................
Less than $350,000 ..........................................................................................................................................................................
Manufacturing entities that have an average of 500 employees or fewer:
35 to 500 employees ........................................................................................................................................................................
Fewer than 35 employees ................................................................................................................................................................
Small Governmental Jurisdictions (Including publicly supported educational institutions) (Population):
20,000 to 50,000 ..............................................................................................................................................................................
Fewer than 20,000 ...........................................................................................................................................................................
Educational Institutions that are not State or Publicly Supported, and have 500 Employees or Fewer:
35 to 500 employees ........................................................................................................................................................................
Fewer than 35 employees ................................................................................................................................................................
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.
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15:23 Jun 05, 2008
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(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
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
PO 00000
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Fmt 4701
Sfmt 4700
$2,300
500
2,300
500
2,300
500
2,300
500
2,300
500
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
fees.resource@nrc.gov, 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. E8–12086 Filed 6–5–08; 8:45 am]
BILLING CODE 7590–01–P
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Agencies
[Federal Register Volume 73, Number 110 (Friday, June 6, 2008)]
[Rules and Regulations]
[Pages 32386-32414]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12086]
[[Page 32385]]
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Part II
Nuclear Regulatory Commission
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10 CFR Parts 170 and 171
Revision of Fee Schedules; Fee Recovery for FY 2008; Final Rule
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Rules
and Regulations
[[Page 32386]]
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
10 CFR Parts 170 and 171
RIN: 3150-AI28
[NRC-2008-0080]
Revision of Fee Schedules; Fee Recovery for FY 2008
AGENCY: Nuclear Regulatory Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Nuclear Regulatory Commission (NRC) is amending the
licensing, inspection, and annual fees charged to its applicants and
licensees.
The 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) activities, and amounts appropriated for generic
homeland security activities. The 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: Effective Date: August 5, 2008.
ADDRESSES: The comments received on the proposed rule and the NRC's
work papers that support these final changes to 10 CFR parts 170 and
171 are available from the following locations:
Federal e-Rulemaking Portal: Go to https://www.regulations.gov and
search for documents filed under Docket ID [NRC-2008-0080]. For further
information about this site, contact Ms. Carol Gallagher, 301-415-5905;
e-mail Carol.Gallagher@nrc.gov.
NRC's Public Document Room (PDR): The public may examine and have
copied for a fee publicly available documents at the NRC's PDR, Public
File Area O-1 F21, One White Flint North, 11555 Rockville Pike,
Rockville, Maryland.
NRC's Agency Wide Document Access and Management System (ADAMS):
Publicly available documents created or received at the NRC after
November 1, 1998, are available electronically at the NRC's electronic
Reading Room at https://www.nrc.gov/reading-rm/adams.html. From this
page, the public can gain entry into 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 1-899-397-4209, or 301-
415-4737, or by e-mail to pdr.resource@nrc.gov.
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. Response to Comments
III. Final Action
IV. Voluntary Consensus Standards
V. Environmental Impact: Categorical Exclusion
VI. Paperwork Reduction Act Statement
VII. Regulatory Analysis
VIII. Regulatory Flexibility Analysis
IX. Backfit Analysis
X. Congressional Review Act
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 10 percent exclusion from fee recovery in NRC's
annual appropriation is to pay for the costs 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'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
approximately $760.7 million to be billed as fees in FY 2008.
The NRC assesses two types of fees to meet the requirements of
OBRA-90, as amended. First, license and inspection fees, established in
10 CFR part 170 under the authority of the Independent Offices
Appropriation Act of 1952 (IOAA), 31 U.S.C. 9701, recover the NRC's
costs of providing special benefits to identifiable applicants and
licensees. Examples of the services provided by the NRC for which these
fees are assessed are the review of applications for new licenses and
the review of renewal applications, the review of amendment requests,
and inspections. Second, annual fees established in 10 CFR part 171
under the authority of OBRA-90, as amended, recover generic and other
regulatory costs not otherwise recovered through 10 CFR part 170 fees.
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 annual fees
for reactor licensees increased. The 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. The
annual fee amounts in the FY 2008 final fee rule are lower than those
in the proposed rule primarily due to the increase in part 170 revenue
estimates for all fee classes.
II. Response to Comments
The NRC published the FY 2008 proposed fee rule on February 13,
2008 (73 FR 8507) to solicit public comment on its proposed revisions
to 10 CFR parts 170 and 171. The NRC received seven comments by the
close of the comment period (March 14, 2008). The comments have been
grouped by issue and are addressed in a collective response.
A. Specific Part 170 Issue
1. Direct Hours Per FTE
Comment. Some commenters requested a better explanation for the
decrease in efficiency for the time, FY 2005 to FY 2008. NRC used 1,371
direct hours per FTE for calculation of hourly rates in FY 2008
compared with 1,446 direct hours per FTE in FY 2005.
[[Page 32387]]
Response. The purpose of the FY 2008 fee rulemaking, as with prior
year fee rulemakings, is to establish fees in a fair and transparent
manner to recover the required portion of the NRC's budget. The
estimate of the direct staff hours per FTE used for the calculation of
the hourly rate was revised based on data retrieved from NRC's time and
labor system data. This revised estimate reflects changes that are
taking place with the NRC's workforce.
In response to the comment on the lower estimated direct staff
hours per FTE in FY 2008 as compared with FY 2005, the estimate is a
reflection of the increase in retirements of more experienced NRC staff
and the increase in hiring of new staff to fill these vacancies. In
addition, the NRC is also recruiting new staff due to the projected
increase in its workload, particularly as it relates to new reactors.
In the near term, as new, less experienced staff continue to come on
board, more hours are required for training and less staff are
available for direct work. For the FY 2008 fee rule, NRC reviewed this
estimate and updated it to 1,371 hours as compared with the lower 1,287
direct hours per FTE used for the FY 2007 hourly rate calculation. NRC
plans to continue to review this estimate in future years and to update
it as appropriate.
B. Specific Part 171 Issues
1. Annual Fee Changes
Comment. Two commenters supported the reduction in annual fees for
uranium recovery licensees. One commenter suggested assessing higher
fees to the uranium recovery licensees as a deterrent to increased
uranium mining. One commenter noted that the annual fee for the
registration of devices generally licensed is too high.
Response. In response to comments on the changes in annual fee
amounts, NRC is rebaselining its fees in FY 2008, as noted in the
proposed fee rule. Under this method, the annual fee amounts are
calculated based on budgeted resources allocated to the fee class and
may fluctuate from one year to the next. Changes in fee amounts in a
fee class reflect the allocation of resources for regulatory activities
to the fee class. As appropriate, the NRC will continue to recover its
cost of application and amendment reviews by billing the identifiable
applicants using the hourly rate.
The NRC fees are set after careful evaluation and allocation of the
costs of its budgeted activities. Policy issues related to discouraging
uranium mining are not within the scope of this rulemaking.
2. Agreement State Activities
Comment. Some commenters requested more discussion of the fee
impact to NRC licensees once additional states beyond the Commonwealth
of Pennsylvania become Agreement States.
Response. In response to concerns regarding decreasing numbers of
NRC licensees in light of more states becoming Agreement States, the
NRC notes that the fee calculation methodology considers the percentage
of licensees in Agreement States in establishing fees for the materials
users fee class. As explained in the proposed fee rule, the budgeted
resources providing support to Agreement States or their licensees are
included in total surcharge costs, which are offset by non-fee recovery
funding provided by Congress. For example, if the NRC develops a rule,
guidance document, or database or other tracking system, that is
associated with or otherwise benefits Agreement State licensees, the
costs of these activities are prorated to the surcharge according to
the percentage of licensees in that fee class in Agreement States
(e.g., if 82 percent of materials users licensees are in Agreement
States, 82 percent of these regulatory infrastructure costs are
included in the surcharge). To address fairness and equity concerns
associated with licensees paying for the cost of activities that do not
directly benefit them, as noted previously, the FY 2001 Energy and
Water Development Appropriations Act amended OBRA-90 to decrease the
NRC's fee recovery amount to 90 percent beginning in FY 2005. To the
extent that the 10 percent of the budget authority which is not fee
recoverable is insufficient to cover all surcharge costs, these
remaining surcharge costs are spread to all licensees based on their
percentage of the budget. In FY 2008, the NRC's fee relief exceeds the
total surcharge cost. This excess fee relief is used to reduce all
licensees' annual fees, based on their percentage of the fee
recoverable budget authority.
C. Other Issues
1. Information Provided by NRC in Support of Proposed Rule
Comment. Some commenters requested more explanation for the
operating reactors fee increases. The details requested include an
explanation of increases in the budget for the new reactor work. The
commenters also wanted more explanation for the reduction in non-fee
items.
Response. In response to the comments on the explanation of
increases in the budget for the new reactor work from FY 2007 to FY
2008 and decreases in non-fee items, the NRC reiterates that the
purpose of this rulemaking is to establish fees to recover most of the
NRC's budget, as required by OBRA-90, as amended. The NRC's budget and
the manner in which the NRC carries out its activities are not within
the scope of this rulemaking. The NRC's budget is submitted to the
Office of Management and Budget (OMB) and Congress for review and
approval. The Congressionally approved budget resulting from this
process contains the NRC resources that must be allocated and then
recovered through assessment of fees.
The purpose of the FY 2008 fee rulemaking, as with prior year fee
rulemakings, is to establish fees in a fair and transparent manner to
recover the required portion of the NRC's budget. As such, the purpose
of this rulemaking is to describe and then solicit and evaluate
comments on the allocation of these resources for fee calculation
purposes. The rule and supporting work papers are not intended to
justify why the budgeted resources for a given planned activity
increased by a particular percentage. Each fiscal year, the NRC's
Performance Budget submitted to the Congress for review provides the
objectives of the budget and how it supports the agency's Strategic
Plan goals and strategies. To assist commenters provide meaningful
comments, the NRC made available NUREG-1100, Volume 23, ``Performance
Budget: Fiscal Year 2008'' (February 2007), which discusses the NRC's
budget for FY 2008, including the activities to be performed in each
program. This document is available on the NRC public Web site at
https://www.nrc.gov/reading-rm.html.
The fee rule and work papers show the value of the approved
budgeted resources, and most importantly for fee calculation purposes,
the fee classes and surcharge categories to which these resources are
allocated. The proposed fee rule work papers included a separate
document for each fee class and surcharge category to show the budget
allocations for FY 2008 and FY 2007 at the planned activity level,
thereby making it easier to see the reasons for any fee changes between
FY 2008 and FY 2007. For example, the proposed fee rule stated that the
power reactor annual fee increased due to an increase in budgeted
resources for new reactor licensing activities. The work papers which
listed the total budgeted FTE and contract resources at the planned
[[Page 32388]]
activity level showed that the budgeted resources for one of the new
reactor licensing activities, Combined Licenses, increased by
approximately 133 FTE and $36 million in FY 2008, as compared with FY
2007.
The information available in the rule, work papers, and the
Performance Budget provided the public extensive information on the
calculation of the proposed fees. Additionally, the contact listed in
the proposed fee rule was available during the public comment period to
answer any questions that commenters had on the development of the
proposed fees. Therefore, the NRC believes that ample information was
available on which to base constructive comments on the proposed
revisions to parts 170 and 171.
2. Changing NRC's Small Entity Size Standards
Comment. One commenter requested that NRC consider revising fees
for small businesses not engaged in manufacturing. The commenter
suggested raising the lower gross receipts amount for the lower tier of
the small entity fee or develop a sliding scale of the small entity
fees.
Response. To alleviate the significant impact of the annual fees on
a substantial number of small entities, NRC established the maximum
small entity fee in FY 1991. In FY 1992, the NRC introduced a second,
lower tier to the small entity fee. 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. The NRC plans to re-
examine the small entity fees again in FY 2009.
3. Need for Timely Budget Estimate
Comment. Several commenters raised concerns about the timing of the
issuance of the fee rule. To address this issue, these commenters
suggested that the NRC publish an estimate of fees for the following
year, coincident with issuance of the proposed fee rule each year.
Response. The NRC acknowledges the concerns raised by these
commenters, and has addressed similar comments in previous fee
rulemakings. The timing of the fee rule each year is contingent upon
when the NRC receives its Congressionally approved budget. The
Commission makes every effort to issue the proposed fee rule as soon as
possible after receiving its appropriation. Because the NRC can not
estimate in advance what its future Congressionally approved budgets
will be (i.e., proposed budgets must be submitted to the OMB for review
before the President submits the budget to Congress for enactment), the
NRC believes it is not practicable to project fees based on future
estimated budgets. For example, at the time the FY 2007 proposed fee
rule was published last year, the NRC was operating under a continuing
resolution that limited the FY 2007 funds to the NRC's FY 2006 funding
level which was approximately $83 million lower than what the President
eventually signed into law on February 15, 2007. Had the NRC proposed
or established preliminary fees based on the NRC funding in FY 2006,
the FY 2007 estimated fees would have been quite different from the
fees ultimately assessed to licensees.
Even if the NRC were able to estimate a future year budget, the
annual fee amounts are highly sensitive to other factors, including the
allocation of these budgeted resources to license fee classes, the
numbers of licensees in a fee class, and the proportion of total class
costs recovered from part 170. The part 170 revenue from a fee class is
particularly difficult to predict in advance, and more so for fee
classes with small numbers of licensees, whose annual fees are even
more sensitive to part 170 revenue estimates. Estimating these factors
in advance would likely lead to inaccurate future fee projections,
which would be misleading to applicants and licensees.
The NRC staff is available to meet with interested licensees to
explain the process of the fee rulemaking and the fee computations. To
arrange a meeting, please contact Renu Suri, telephone 301-415-0161; e-
mail Renu.Suri@nrc.gov; Office of the Chief Financial Officer, U.S.
Nuclear Regulatory Commission, Washington, DC 20555-0001.
4. Increase in the Fund Balance With Treasury
Comment. Some commenters requested an explanation for the increase
in the NRC's fund balance with the Treasury account in FY 2007 as
compared with FY 2006.
Response. The fund balance with the Treasury represents
appropriated funds in a U.S. Treasury account that are available to pay
NRC's current liabilities and to finance the agency's authorized
purchase commitments. Note 2 to the annual financial
statements, Fund Balance with Treasury, in the Performance and
Accountability Report, FY 2007, NUREG-1542, Volume 13, describes the
components of this NRC asset. The amount of the fund balance with the
Treasury has no impact on the calculation of the fee amounts. The OBRA-
90, as amended, requires the NRC to recover 90 percent of its budget
authority for the fiscal year through fees. Therefore, an explanation
for the increase in the NRC's fund balance with the Treasury for a
prior year is outside the scope of this rulemaking. The NUREG-1542,
Volume 13, which has more details on this fund balance is available on
the NRC public Web site at https://www.nrc.gov/reading-rm.html.
III. Final Action
The NRC is amending 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 of $779.1 million is further
reduced for billing adjustments and carryover from the prior year. The
FY 2008 billing adjustments of $5 million are primarily 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. In FY
2008, the carryover amount is approximately $13.3 million which
includes 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 1 summarizes the budget and fee recovery amounts for FY 2008.
(Individual values may not sum to totals due to rounding.)
[[Page 32389]]
Table 1.--Budget and Fee Recovery Amounts for FY 2008
[Dollars in millions]
------------------------------------------------------------------------
------------------------------------------------------------------------
Total Budget Authority..................................... $926.1
Less non-fee items..................................... -60.4
------------
Balance............................................ $865.7
Fee Recovery Rate for FY 2008.......................... x 90.0%
------------
Total Amount to be Recovered for FY 2008................... $779.1
Less Carryover from FY 2007............................ -13.3
Less Part 171 Billing Adjustments
Unpaid FY 2008 Invoices (estimated)................ 2.7
Less Payments Received in FY 2008 for Prior Year -7.8
Invoices (estimated)..............................
------------
Subtotal........................................... -18.4
============
Amount to be Recovered Through Parts 170 and 171 Fees...... $760.7
Less Estimated Part 170 Fees........................... -291.8
------------
Part 171 Fee Collections Required.......................... $468.9
------------------------------------------------------------------------
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 (see the discussion in the NRC's final fee rule for FY
2006, 71 FR 30731; May 30, 2006). 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 and results in a reduction 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 has updated the part 170 estimates for this final
rule based on the latest invoice data available. In total, the part 170
estimates increased by approximately $8 million from the FY 2008
proposed fee rule; approximately $5 million of this increase is for the
power reactor fee class.
The NRC estimates that in FY 2008 approximately $291.8 million will
be recovered from part 170 fees. This represents an increase of
approximately 37 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
$468.9 million will be recovered through the part 171 annual fees in FY
2008, compared to $465.3 million for FY 2007, an increase of less than
1 percent. Annual fees for most licensees decreased between the FY 2008
proposed and final fee rules primarily due to higher part 170 fee
collections.
The FY 2008 final fee rule is 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.
The NRC will not routinely mail the FY 2008 final fee rule or
future final fee rules to applicants or 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 fees.resource@nrc.gov. In addition to publication in the Federal
Register, the final rule is available on the Internet at https://
www.regulations.gov.
The NRC is amending 10 CFR parts 170 and 171 as discussed in
Sections III.A and III.B of this document.
A. Amendments to 10 CFR Part 170: Fees for Facilities, Materials,
Import and Export Licenses, and Other Regulatory Services Under the
Atomic Energy Act of 1954, as Amended
The NRC is establishing a single hourly rate of $238 to recover the
full cost of activities under part 170, and will use this rate to
calculate ``flat'' application fees. The rule also makes minor
administrative changes for
[[Page 32390]]
purposes of clarification and consistency.
The NRC is making 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 for flat fees for certain
application reviews. The NRC is lowering the FY 2008 hourly rate to
$238 from the FY 2007 rate of $258. This rate is applicable to all
activities for which fees are assessed under Sec. Sec. 170.21 and
170.31. The FY 2008 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 calculated by dividing the
recoverable budgeted resources (excluding direct contract activities)
by mission direct FTE hours. The numerator, recoverable budget
resources, is the sum of (1) mission direct program salaries and
benefits; (2) mission indirect salaries and benefits and contract
activity; and (3) agency management and support and Inspector General.
The only budgeted resources excluded from the hourly rate are those for
mission direct contract activities. The denominator, mission direct FTE
hours, is derived by multiplying budgeted mission direct FTE by the
annual direct hours per FTE. 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 increase in direct FTEs
(2,079 FTE vs. 1,835 FTE) and revised higher estimate of direct hours
per FTE (1,371 hours vs. 1,287 hours).
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 the net recoverable budget by the mission direct
FTE hours (see descriptions above), the higher the number of direct
hours per FTE used in the calculation, the lower the hourly rates.
The NRC is updating 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
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 lower hourly rate
caused a decrease in both the full cost fees for licensing and
inspection activities, and the 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.)
Table II.--FY 2008 Hourly Rate Calculation
------------------------------------------------------------------------
------------------------------------------------------------------------
Mission Direct Program Salaries & Benefits............... $292.6M
Mission Indirect Salaries & Benefits, and Contract 120.7M
Activity................................................
Agency Management and Support, and IG.................... 266.2M
--------------
Subtotal............................................. $679.5M
Less Offsetting Receipts................................. -0.0M
--------------
Net Recoverable Budget Included in Hourly Rate....... $679.5M
Mission Direct FTEs...................................... 2,079
Professional Hourly Rate (Net Recoverable Budget Included $238
in Hourly Rate divided by Mission Direct FTE times 1,371
Annual Direct Hours Per FTE)............................
------------------------------------------------------------------------
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
As noted above, the NRC is adjusting 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
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 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 will 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. At the time 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 10 CFR parts 170 and 171
is determined by the fee category, which is also based on the
authorized usage contained 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
[[Page 32391]]
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 making 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 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 is making the following changes to part 171: Using its fee
relief to reduce all licensees' annual fees; changing the number of NRC
licensees for some fee categories; establishing rebaselined annual fees
based on the NRC's FY 2008 budget authority; and making some minor
administrative amendments. The final amendments are described as
follows:
1. Application of ``Fee Relief''
The NRC is using 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 $8.9 million. In FY 2007, this fee relief exceeded the
total surcharge cost by approximately $9.8 million. Although the fee
relief in FY 2008 is approximately $12.2 million higher compared with
FY 2007, the amount of fee relief allocated to licensees decreases
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.
The excess fee relief for the FY 2008 final rule increased by
approximately $1.4 million compared with the proposed primarily due to
a change in the generic decommissioning/reclamation surcharge costs.
The amount in this surcharge category decreased from the proposed rule
due to a smaller budget resource allocation for the generic
decommissioning activities related to uranium recovery sites and a
higher part 170 revenue estimate for all generic decommissioning/
reclamation activities.
As in FY 2007, the NRC is using the $8.9 million excess 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 $77.7 million. The NRC's total fee relief in FY 2008 is
$86.6 million, leaving $8.9 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.)
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 13.5
the power reactor and spent fuel storage fee classes).
c. In-situ Leach Uranium Extraction rulemaking and 2.9
unregistered general licensees........................
------------
Total surcharge costs.............................. 77.7
Less 10 percent of NRC's FY 2008 total budget (less non-fee -86.6
items)....................................................
------------
Fee Relief to be Allocated to All Licensees' Annual -8.9
Fees..............................................
------------------------------------------------------------------------
Table IV shows how the NRC is allocating the $8.9 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)
[[Page 32392]]
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 (i.e., not an annual fee
reduction), 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 (fee
-------------------------- reduction)
-------------------------- Total $M
Percent $M Percent $M
----------------------------------------------------------------------------------------------------------------
Operating Power Reactors....................... 74 2.1 89.6 -8.0 -5.9
Spent Fuel Storage/Reactor Decommissioning..... ........... ........... 2.9 -0.3 -0.3
Test and Research Reactors..................... ........... ........... 0.1 0.0 0.0
Fuel Facilities................................ 8 0.2 4.1 -0.4 -0.1
Materials Users................................ 18 0.5 2.5 -0.2 0.3
Transportation................................. ........... ........... 0.4 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 -8.9 -6.0
----------------------------------------------------------------------------------------------------------------
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 NRC approved the request. This
resulted in the transfer of approximately 650 licenses from the NRC to
the Commonwealth of Pennsylvania effective March 31, 2008.
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 has updated 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, as a
result 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 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 effective March 31, 2008. Because of the effective date of
March 31, 2008, which is at the end of the first half of the FY, the
approximately 650 licensees transferred to the Commonwealth of
Pennsylvania are subject to one-half of their NRC annual fee for FY
2008. The number of materials users licensees has been revised to
reflect that NRC will still collect one-half of the annual fee from
these licensees. Also, the single NRC rare earth license under fee
category 2.A.(2)(c) has been transferred 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 transferred to the Commonwealth of
Pennsylvania in FY 2008, this rare earth facility paid 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.
3. Revised Annual Fees
The NRC is revising 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
final rule increased by approximately $8 million from the proposed fee
rule based on the latest invoice data available. The total amount to be
recovered through annual fees for FY 2008 decreased to $468.9 million
compared with $477.2 million in the proposed fee rule primarily due to
the increase in the part 170 estimate. 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
[[Page 32393]]
and non-power reactors), and decreased annual fees for five classes of
licensees (spent fuel storage/reactor decommissioning, fuel facilities,
uranium recovery, materials users, and transportation). 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 III.B.2 of this
document, ``Agreement State Activities,'' NRC's only rare earth
facility transferred to the Commonwealth of Pennsylvania, which became
an Agreement State, effective March 31, 2008. In FY 2008, this rare
earth facility paid 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, a higher part 170 revenue estimate, and
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 $4,167,000
Spent FuelStorage/Reactor
Decommissioning annual fee)............
Spent Fuel Storage/Reactor 159,000 135,000
Decommissioning........................
Test and Research Reactors (Non-power 76,300 76,500
Reactors)..............................
High Enriched Uranium Fuel Facility..... 4,096,000 3,007,000
Low Enriched Uranium Fuel Facility...... 1,237,000 899,000
UF6 Conversion Facility................. 811,000 589,000
Conventional Mills...................... 18,700 10,300
Typical Materials Users:
Radiographers....................... 14,100 11,100
Well Loggers........................ 4,400 3,400
Gauge Users (Category 3P)........... 2,700 2,100
Broad Scope Medical................. 29,000 22,900
------------------------------------------------------------------------
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 final
rule show in detail the allocation of NRC's budgeted resources for each
class of license 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 final fee rule.
The sequence of the information in the work papers now matches the
sequence in this final 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 https://
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 $13.9 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 2007 FY 2008
Summary fee calculations final final
------------------------------------------------------------------------
Total budgeted resources...................... $32.2 $31.5
Less estimated part 170 receipts.............. -13.6 -17.2
-------------------------
Net part 171 resources.................... 18.6 14.3
Allocated generic transportation.............. +0.5 +0.5
Allocated surcharge........................... -0.2 -0.1
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Billing adjustments (including carryover)..... +0.1 -0.8
-------------------------
Total required annual fee recovery........ 18.9 13.9
------------------------------------------------------------------------
The decrease in fuel facilities FY 2008 total budgeted cost to be
recovered compared with FY 2007 is due to lower fuel facility resources
for licensing activities, a higher part 170 revenue estimate, and
adjustment for higher carryover. The part 170 revenue estimate for FY
2008 final rule increased by approximately 1 percent compared with the
proposed rule due to increased billing for fuel facilities. This
results in lower FY 2008 annual fees for fuel facilities in this final
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). In addition, the licensees
are grouped 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,
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 of
Number 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 Demonstration......................... 1 3 (1.2) 15 (7.9)
Hot Cell........................................................ 1 6 (2.3) 2 (1.1)
----------------------------------------------------------------------------------------------------------------
The budgeted resources for safety activities ($8,045,570) 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
[[Page 32395]]
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
($5,948,086) 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
$137,150) and the billing adjustment (a fee reduction in FY 2008 of
$752,859) 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
Facility type (fee category) annual fee
------------------------------------------------------------------------
High Enriched Uranium Fuel.............................. $3,007,000
Uranium Enrichment...................................... 1,705,000
Low Enriched Uranium.................................... 899,000
UF6 Conversion.......................................... 589,000
Gas Centrifuge Enrichment Demonstration................. 558,000
Limited Operations Facility............................. 341,000
Hot Cell (and others)................................... 248,000
------------------------------------------------------------------------
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 ur