ADOPTED

REGULATORY ANALYSIS

FOR

AMENDMENTS TO THE COLORADO STATE BOARD OF HEALTH

RULES AND REGULATIONS PERTAINING TO RADIATION CONTROL

6 CCR 1007-1

Part 18, Licensing Requirements for Uranium and Thorium Processing

Adopted by the Board of Health on March 16, 2011

1.A description of the classes of persons who will bear the costs and/or benefits from the proposed rule.

The changes to Part 18 will apply to any Colorado licensee who is authorized for processing of Uranium or Thorium. The changes will also applyto applicants who may apply for a license to process Uranium or Thorium in the future.

On November 29, 2010 Colorado had 3specific radioactive material licensees authorized for Uranium or Thorium processing or related activities. However, all of the facilities are undergoing decommissioning, are near closure, or are otherwise in a standby condition and are not authorized by license condition to receive material for processing.

2.The probable quantitative and qualitative impacts of the proposed rule, economic and otherwise, upon the affected classes.

Quantitative:

Consistent with the changes to the Colorado Radiation Control Act (the Act) in 2002, 2003, and 2010, the changes to Part 18 require submittal of additional information and efforts to be conducted by existing licensees (when receiving new material) and new applicants, of Uranium and Thorium processing facilities. It is anticipated that these additional requirements will require monetary expenditures beyond those currently required by regulation and the pre-2002 statute. The exact monetary impact of this is unknown, since the submittal of new license applications is not fully predictable, nor are changes made by existing licensees fully known or predictable. The Department is currently reviewing an application for a Uranium processing facility, and is implementing the new requirements through the Act.

Qualitative:

Consistent with the changes to the statute, thechanges to Part 18 adds additional requirements for new applicants who wish to obtain a radioactive materials license to process Uranium and/or Thorium. The changes also impact existing licensees who wish to receive material not currently authorized by license condition. The proposed changes also specify exclusions from certain requirements for lesser amounts of source material consistent with the Act.

The net qualitative effect of these changes is to keep Colorado rules consistent with the changes to the Colorado Radiation Control Act, and to be consistent with the framework governing use of radioactive material nationally to help licensees operate effectively within that national framework.

3.Probable costs to the Department and to local health departments and anticipated effects on state revenues.

It is expected that the Radiation Program, will spend additional time and resources to evaluatethe additional documentation, and for involvement with public notices and participation in public hearings as required by Part 18. The Department will also incur additional costs during the review process for any existing or new license applications. These costs, are however, generally recoverable through assessment of application and licensing fees. Depending upon the number of simultaneous applications or significant activities which invoke additional requirements contained in Part 18, current Department resources may become exhausted in which case additional personnel resources would have to be requested and authorized.

The statutory changes reflected in these proposed regulatory changes requires that up to $50,000 be provided by the applicant to the county where a facility is located to support the review of the Environmental report and application. Therefore,

;local health departments are unlikely to be impacted by these changes. However, it is conceivable that the applicant/licensee, or local communities or governmental agencies specifically and formally request an evaluation by a local health department of certain aspects within their regulatory purview that could exceed the available funds. This is not predictable, however.

4.A comparison of the probable costs and benefits of the proposed rule and probable costs and benefits of inaction.

These changes are intended to reduce the extra time and effort needed to comply with the requirements by ensuring consistency with changes to the statute and similar Federal requirements. Inaction would result in non-compliance and/or conflict with the statutory requirements.

5.A determination of whether there are less costly or less intrusive means to achieve the purpose of the proposed rule.

No less costly or less intrusive means will achieve the purpose of these rule changes. The purpose of the rule change is to incorporate changes from, and be consistent with state statute.

6.A description of alternative methods for achieving the purpose of the proposed rule.

The advantages of implementing the proposed changes outweigh the alternative of taking no action.

7.To the extent practicable, a quantification of the data used in the analysis, taking into account both short-term and long-term consequences.

The number of entities potentially impacted by changes to this part is expected to increasesomewhat, as there is currently an application for a new Part 18 facility under review by the Department. Other entities have also indicated the intent to submit an application for a new Uranium processing facility within the next calendar year. The future activitiesfor some existing Uranium and Thorium processing licensees is not known at this time so the impacts cannot be fully evaluated for those facilities.

The Colorado Radiation Advisory Committee (RAC) has reviewed these modifications to Part 18at the September 29, 2010, and November 10, 2010 RAC meetings. The RAC approved this Part by electronic vote following the February 10, 2011 meeting.

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