UNITED STATES 

 NUCLEAR REGULATORY COMMISSION 

 REGION I 

 475 ALLENDALE ROAD 

 KING OF PRUSSIA, PENNSYLVANIA 19406-1415

October 26, 2010 

Debra Shults, Director 

Division of Radiological Health 

Department of the Environment and Conservation 

L&C Annex, Third Floor 

401 Church Street 

Nashville, TN 37243-1532 

Dear Ms. Shults: 

A periodic meeting with your Office was held on July 28, 2010. The purpose of the meeting was 

to review and discuss the status of the Tennessee Department of the Environment and 

Conservation’s Agreement State program. The NRC was represented by John Kinneman, 

Michelle Beardsley, and me. 

I have completed and enclosed a general meeting summary, including any specific actions that 

will be taken as a result of the meeting. 

If you feel that our conclusions do not accurately summarize the meeting discussion, or have 

any additional remarks about the meeting in general, please contact me at (610) 337-5371, or 

email to Donna.Janda@nrc.gov to discuss your comments. 

Sincerely, 

/RA/ 

Donna M. Janda 

Regional State Agreements Officer 

Division of Nuclear Materials Safety 

Enclosure: As stated 

 

 
October 26, 2010 

Debra Shults, Director 

Division of Radiological Health 

Department of the Environment and Conservation 

L&C Annex, Third Floor 

401 Church Street 

Nashville, TN 37243-1532 

Dear Ms. Shults: 

A periodic meeting with your Office was held on July 28, 2010. The purpose of the meeting was 

to review and discuss the status of the Tennessee Department of the Environment and 

Conservation’s Agreement State program. The NRC was represented by John Kinneman, 

Michelle Beardsley, and me. 

I have completed and enclosed a general meeting summary, including any specific actions that 

will be taken as a result of the meeting. 

If you feel that our conclusions do not accurately summarize the meeting discussion, or have 

any additional remarks about the meeting in general, please contact me at (610) 337-5371, or 

email to Donna.Janda@nrc.gov to discuss your comments. 

Sincerely, 

/RA/ 

Donna M. Janda 

Regional State Agreements Officer 

Division of Nuclear Materials Safety 

Enclosure: As stated 

Distribution: 

Michelle Beardsley, FSME 

Monica Orendi, FSME 

John Kinneman, RI 

SUNSI Review Complete: DMJ (Reviewer=s Initials) ML103000173

DOCUMENT NAME: S:\State Agreement Files\Tennessee\TN Periodic Meeting Summary 7-28-2010.docx 

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OFFICE DNMS/RI E 

NAME DJanda/dmj 

DATE 10/26/10 

OFFICIAL RECORD COPY

 
ENCLOSURE 

AGREEMENT STATE PERIODIC MEETING SUMMARY FOR 

TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION 

DIVISION OF RADIOLOGICAL HEALTH 

DATE OF MEETING: July 28, 2010 

NRC Attendees Tennessee Division of Radiological Health Attendees

John Kinneman, Region I, 

Director, DNMS 

Debra Shults, Acting Director 

Donna Janda, Region I RSAO Johnny Graves, Manager, Licensing, Registration, and 

Planning 

Michelle Beardsley, FSME , 

Health Physicist 

Billy Freeman, Manager, Inspection and Enforcement 

 Beth Murphy, Supervisor, Standards Development 

 Eddie Nanney, Health Physicist 

DISCUSSION: 

In April 2008, the Integrated Materials Performance Evaluation Program (IMPEP) review team 

found the Tennessee Department of Environment and Conservation (DEC) Agreement State 

Program’s (the Program) performance to be satisfactory for four performance indicators and 

satisfactory, but needs improvement, for the indicators Technical Staffing and Training, 

Compatibility Requirements, and Sealed Source and Device Evaluation Program. Four 

recommendations were made by the review team regarding the Program. On July 15, 2008, the 

Management Review Board (MRB) met to consider the IMPEP review team’s proposed findings 

regarding the Program. The MRB found the Program adequate, but needs improvement, to 

protect public health and safety and compatible with the NRC’s program. Based on the results 

of the IMPEP review, the review team recommended, and the MRB agreed, that the next full 

IMPEP review take place in approximately four years and that a periodic meeting be held in 

approximately two years from the date of the IMPEP. 

This summary describes that periodic meeting. 

The status of the State’s actions to address the open recommendations follows: 

1. The review team recommends that the State evaluate the Division’s projected staffing 

level and take appropriate action to ensure that the Division has adequate resources to 

achieve its primary objective of protecting public health, safety, and security. 

Current status: Since the 2008 IMPEP review, six employees left the Division and three 

employees were hired by the Division. The Program Director recently retired and has 

returned to the Program as a 120-day rehired annuitant. The Deputy Director is 

currently serving as the Acting Program Director. The Program currently has 37 

individuals with various degrees of involvement in the radioactive materials program, 

including 27 inspectors, five license reviewers, and one contractor. The Division expects 

the freeze to be lifted in the near future on two of the five open positions which were 

frozen at the time of the 2008 IMPEP review. Although still understaffed, the Program is 

not experiencing any backlogs in licensing or inspection activities. 

This recommendation remains open and should be evaluated at the next IMPEP review. 
Tennessee Periodic Meeting Summary Page 2 

ENCLOSURE 

2. The review team recommends that the State develop a method to document clearly that 

an inspector or license reviewer is qualified or approved to perform inspections or 

licensing actions of the different license types upon completion of specified training. 

Current Status: The Program has implemented the use of training records for each 

inspector to document qualification/approval for the different types of licenses after 

completion of training courses and supervisory accompaniments. Copies of these 

records are maintained in the Central Office as well as the Regional Office in which the 

inspector is based. In addition, the Central Office maintains records for license reviewer 

qualifications, including documentation of training courses and on-the-job training for 

license reviewers for the different types of licensing actions. 

This recommendation remains open and should be evaluated at the next IMPEP review. 

3. The review team recommends that the State review the training policy to ensure that it 

meets current and future needs of the staff and revise the policy, as appropriate, to 

include on-the-job training and security training. 

Current Status: The Program’s current training policy includes on-the-job training and 

security training to address current and future needs of the staff. Both license reviewers 

and inspectors have attended the NRC security training course. 

This recommendation remains open and should be evaluated at the next IMPEP review. 

4. The review team recommends that the State establish a means to ensure evaluations 

are conducted with thoroughness; consistency with ANSI standards and NUREG-1556, 

Volume 3; and adherence to existing guidance in product evaluations. 

Current Status: In order to ensure thoroughness and consistency with ANSI standards 

and existing guidance, the Program’s SS&D reviewers use a review checklist based on 

the checklist found in NUREG-1556, Volume 3, for all SS&D licensing actions. 

 This recommendation remains open and should be evaluated at the next IMPEP review. 

TOPICS COVERED DURING THE MEETING INCLUDED:

Program Strengths

A well-trained, stable, and experienced senior staff with 10 years or more of experience is a 

major strength of the Program. According to Program management, the technical staff has 

developed unique skill sets in licensing and inspection of the State’s complex waste processing 

licensees and in external communications for dealing with media and public interest in the Bulk 

Survey for Release program, waste processing and blending issues, and the Nuclear Fuel 

Services site. The Program receives good management and administrative support. 

Program Weaknesses

Program management identified low salaries and the absence of pay raises for the past 3 years 

as a weakness of the Program because of the difficulty in retaining technical staff once they are 

trained. In addition, field inspection staff members do not directly report to the Central Office. 

Instead they report to Field Office Directors, which makes it difficult to maintain a sense of 

rapport within the Division’s radioactive materials program. 
Tennessee Periodic Meeting Summary Page 3 

ENCLOSURE 

Feedback on the NRC’s Program

The Program staff commented that the overall relationship with the NRC is good. The Program 

appreciates NRC funding of qualification training courses. The Program staff noted that 

because NRC sponsors only one or two medical courses each calendar year, it can be difficult 

for State staff to be accepted into the courses due to the limited number of spaces available. In 

addition, the Program would appreciate more emphasis on regulation of radioactive material 

and health physics implications of medical modalities in the medical courses. 

Agreement State Program Staffing and Training

Program staffing, turnover and vacancies are discussed in Recommendation 1 above. 

Support for staff training exists in the Program. New technical staff members are currently in 

the qualification process and attending NRC courses as available. Program staff members 

attend NRC and other training courses and seek alternate resources for training such as inhouse and on-the-job training. 

Organization

The Program is administered by the Division of Radiological Health (the Division), which is part 

of the Department of the Environment and Conservation. The Division is comprised of the 

Office of the Director and four Sections: Administrative, Inspection and Enforcement, 

Licensing/Registration/Policy Services, and Technical Services sections. Inspection, 

enforcement and incident response activities are conducted primarily through four field offices 

located in Nashville, Chattanooga, Memphis, and Knoxville. All other Program activities are 

conducted primarily through the Central Office in Nashville. 

Program Budget/Funding

Fees from radioactive materials licensees are placed into the Environmental Protection Fund 

(EPF). Licensee fees have not been increased since 2001 and cannot be raised if program 

funding is cut. The State legislature has taken approximately one half of the carryover funds 

from the 2007-2008 fiscal year and it is unknown if the carryover funds from the 2008-2009 

fiscal year will be decreased. The Program is attempting to raise licensee fees by 

approximately 20%. Rulemaking and public hearings have been held on the issue but the 

Program cannot move forward until it is known if the EPF will be decreased. 

Inspection/Licensing Programs

The Program has approximately 600 radioactive materials licenses. The Program’s inspection 

frequencies are at least as frequent as NRC’s. No inspections were overdue at the time of this 

meeting. Inspections which were overdue at the time of the 2008 IMPEP have been completed. 

The Program maintains a database to monitor inspection scheduling and tracking. 

Management is aware of the importance of inspection program schedules. The Program has 

completed the first round of increased controls (IC) inspections and continues to conduct IC 

inspections in conjunction with the routine safety inspection. 

The Program maintains a database for tracking licensing actions and did not have a licensing 

backlog at the time of this meeting. The Program is aware of the requirement for “pre-licensing” 

visits. The Program issues licenses with a ten-year renewal requirement. 
Tennessee Periodic Meeting Summary Page 4 

ENCLOSURE 

Regulations

Since the April 2008 IMPEP, the State submitted eight final regulation packages and two 

proposed regulation packages to NRC for a compatibility review to address the following 

amendments: 

• The 30.35 portion of “Decommissioning Recordkeeping and License Termination: 

Documentation Additions [Restricted areas and spill sites],” 10 CFR Parts 30 and 40 

amendment (58 FR 39628), that was due for Agreement State implementation on 

October 25, 1996. 

• The 30.35 portion of “Clarification of Decommissioning Funding Requirements,” 10 CFR 

Parts 30, 40, and 70 amendment (60 FR 38235), that was due for Agreement State 

implementation on November 24, 1998. 

• The 30.35 portion of “Termination or Transfer of Licensed Activities: Recordkeeping 

Requirements,” 10 CFR Parts 20, 30, 40, 61, and 70 amendment (61 FR 24669), that 

was due for Agreement State implementation on June 17, 1999. 

• “Medical Use of Byproduct Material,” 10 CFR Parts 20, 32, and 35 amendment (67 FR 

20249), that was due for Agreement State implementation on October 24, 2005. 

• “Financial Assurance for Materials Licensees,” 10 CFR Parts 30, 40, and 70 amendment 

(68 FR 57327), that was due for Agreement State implementation on December 3, 2006. 

• “Compatibility with IAEA Transportation Safety Standards and Other Transportation 

Safety Amendments,” 10 CFR Part 71 amendment (69 FR 3697), that was due for 

Agreement State implementation on October 1, 2007. 

• “Medical Use of Byproduct Material – Recognition of Specialty Boards,” 10 CFR Part 35 

amendment (70 FR 16336 and 71 FR 1926), that was due for Agreement State 

implementation on April 29, 2008. 

• “National Source Tracking System,” 10 CFR Part 20 amendment (71 FR 65685, 72 FR 

59162), that was due for Agreement State implementation on January 31, 2009. 

• “Minor Amendments,” 10 CFR Parts 20, 30, 32, 35, 40, and 70 amendment (71 FR 

15005), that was due for Agreement State implementation on March 27, 2009. 

• “Medical Use of Byproduct Material – Minor Corrections and Clarifications,” 10 CFR 

Parts 32 and 35 amendment (72 FR 45147 and 72 FR 54207), that is due for Agreement 

State adoption by October 29, 2010. 

The State will need to address the following NRC amendments in the future: 

• “Requirements for Expanded Definition of Byproduct Material,” 10 CFR Parts 20, 30, 31, 

32, 33, 35, 61, and 150 amendment (72 FR 55864), that is due for Agreement State 

adoption by November 30, 2010. 

• “Exemptions From Licensing, General Licenses, and Distribution of Byproduct Material: 

Licensing and Reporting Requirements,” 10 CFR Parts 30, 31, 32, and 150 amendment 

(72 FR 58473), that is due for Agreement State adoption by December 17, 2010. 
Tennessee Periodic Meeting Summary Page 5 

ENCLOSURE 

• “Occupational Dose Records, Labeling, Containers, and Total Effective Dose 

Equivalent,” 10 CFR Parts 19 and 20 amendment (72 FR 68043), that is due for 

Agreement State adoption by February 15, 2011. 

• “Medical Use of Byproduct Material – Authorized User Clarification,” 10 CFR Part 35 (74 

FR 33901), that is due for Agreement State adoption by September 28, 2012. 

Event Reporting

The Program communicates reportable incidents to the NRC Operations Center and Region I 

when appropriate in a prompt manner. The Program has reported five events to the NRC since 

the 2008 IMPEP review. 

Response to Incidents and Allegations

The Program continues to be sensitive to notifications of incidents and allegations. Incidents 

are quickly reviewed for the potential effect on public health and safety. Staff members are 

dispatched to perform onsite investigations when necessary. The Program is aware of the need 

to maintain an effective response to incidents and allegations and has procedures in place to 

ensure appropriate follow up action is taken. The Program conducts investigations of 

allegations received by the Program and follows up with the concerned individuals regarding the 

outcome of the investigations. 

Significant Events and Generic Implications

The Program staff and NRC discussed one significant event involving a Tennessee licensee 

which occurred at a South Carolina hospital in December 2009. The event involved the rupture 

of a sealed source resulting in the contamination of several areas in the Radiation Oncology 

Department at the hospital and in the vehicle of an employee of the TN licensee who packaged 

the source. Both Tennessee and South Carolina have conducted follow up investigations. 

The Program is currently evaluating possible generic implications from several recent events in 

other jurisdictions involving stuck shutters on fixed gauges distributed by a Tennessee licensee. 

Subsequent to this meeting, the Program has been working with FSME to determine if any 

future actions regarding this issue are warranted. 

Sealed Source and Device Evaluation Program

Since the 2008 IMPEP review, the program has received one new application and five 

amendment requests for SS&D certificates. The Program has five individuals who perform 

SS&D evaluations. 

Current State Initiatives

The Bulk Survey for Release Program is being revised to ensure consistency in the modalities 

between the four licensees in this State Program. 

Emerging Technologies

The Program noted that an amendment which was introduced in the State Senate to ban 

blending of radioactive waste did not pass in Committee. The State has not received any 

requests to license blending activities. 
Tennessee Periodic Meeting Summary Page 6 

ENCLOSURE 

Large, Complicated, or Unusual Authorizations for Use of Radioactive Material

Since the 2008 IMPEP review, the Program has licensed activities involving pyrolysis of nonresin products and processing of steam generators. 

State’s Mechanisms to Evaluate Performance

The Program tracks inspection due dates on a Program database. Program management 

reviews the inspection due list on a monthly basis to ensure timeliness of inspections. Program 

managers review inspection reports. Field Office managers hold staff meetings on a quarterly 

basis. 

Certain licensing actions are reviewed by Program managers. Licensing actions signed by 

junior reviewers receive several levels of review before the license is issued. If a licensing 

action is not worked on within 60 days of receipt of the action, the fee is returned to the 

applicant/licensee. 

The Division holds a 2-3 day annual staff meeting for both Central Office and Field Office staff to 

discuss items of mutual importance and to conduct training sessions as needed. 

Summary

The Tennessee radioactive materials program continues to be a strong, stable Agreement State 

program. The Program staff is experienced and well-trained. With the increased focus on the 

safety and security of radioactive material, program resources have become much more critical 

and the State is closely monitoring the need to increase staffing when necessary. 

NRC staff recommends that the next IMPEP review should be conducted as scheduled in 

FY 2012 (tentatively April 2012).