[Federal Register Volume 60, Number 244 (Wednesday, December 20, 1995)]
[Notices]
[Pages 65694-65695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30888]



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NUCLEAR REGULATORY COMMISSION

Regulatory Analysis Guidelines of the U.S. Nuclear Regulatory 
Commission, NUREG/BR-0058, Revision 2; Issuance, Availability

    The Nuclear Regulatory Commission has recently published 
``Regulatory Analysis Guidelines of the Nuclear Regulatory 
Commission,'' NUREG/BR-0058, Revision 2. For over 20 years the NRC has 
conducted regulatory value-impact analyses to determine whether there 
is an adequate basis for imposing new requirements on licensees. In 
January 1983, the NRC first published its Regulatory Analysis 
Guidelines (NUREG/BR-0058) in order to clarify and formalize its 
existing value-impact guidance for the analysis of regulatory actions. 
Revision 1 to NUREG/BR-0058 was issued in May 1984 to include 
appropriate references to NUREG/CR-3568; a handbook that provided 
implementation guidance to the NRC staff for the policy set forth in 
the Guidelines.
    In August 1993, the NRC published a draft version of the 
Guidelines, Revision 2, and invited public comment on the draft report. 
This revision reflects (1) the NRC's accumulated experience with 
implementing the previous Guidelines; (2) changes in NRC regulations 
and procedures since 1984, especially the backfit rule (10 CFR 50.109) 
and the Policy Statement on Safety Goals for the Operation of Nuclear 
Power Plants (51 FR 30028, August 21, 1986); (3) advances and 
refinements in regulatory analysis techniques; (4) regulatory guidance 
for Federal agencies issued by the Office of Management and Budget 
(OMB); and (5) procedural changes designed to enhance NRC's regulatory 
effectiveness.
    In the draft report, the NRC indicated that a review and analysis 
of the dollar per person-rem conversion factor policy was ongoing and 
until its completion, the existing conversion factor policy would 
remain operative. The conversion factor is a central consideration 
because it is the basis for translating radiological exposure to a 
monetary value and, as such, allows direct comparison between the 
potential health and safety benefits and the costs of a proposed 
regulatory initiative. The staff's reevaluation has now been completed, 
and the Commission has decided to implement a $2000 per person-rem 
conversion factor, subject it to present worth considerations, and 
limit its scope solely to health effects. This is in contrast to the 
previous policy and staff practice of using an undiscounted $1000 per 
person-rem conversion factor which served as a surrogate for all 
offsite consequences (health and offsite property).
    The new conversion factor policy is based on a relatively simple 
and straightforward logic in which the dollar per person-rem conversion 
factor is defined as the product of the dollar value of the health 
detriment and a risk coefficient that establishes the probability of 
health effects as a result of low doses of radiation. In the NRC's 
formulation, the value of the latter term is on the order of 
7 x 10<SUP>-4 per rem which includes allowances for fatal cancers, 
nonfatal cancers, and severe genetic effects. The national and 
international bodies (NCRP, ICRP) directly responsible for evaluating 
and recommending a risk coefficient for the total health detriment are 
all in close agreement, and NRC has adopted their recommendations. For 
the dollar valuation of the health detriment, the NRC has adopted $3 
million as a representative value. This estimate is consistent with 
OMB's best estimate and an extensive literature review performed by the 
NRC. The resulting $2000 conversion factor was derived by multiplying 
these two factors (7 x 10<SUP>-4 and $3 million) and expressing the 
result with one significant digit.
    In addition, to provide meaningful summations of the costs and 
benefits that accrue over time, the dollar valuation of person-rem are 
to be expressed on a present-worth basis. Based on OMB guidance, 
present-worth calculations are to use the recommended discount rate 
specified in the latest version of OMB Circular A-94. This circular was 
most recently updated in late 1992 and specifies the use of a 7-percent 
real discount rate.
    The final change in conversion factor policy concerns the treatment 
of offsite property consequences. The $2000 conversion factor is now 
clearly defined as the value of the health effects associated with a 
person-rem of dose. As such, it can no longer be used as a surrogate 
value for other consequences that could be attributable to offsite 
radiological releases or exposures. Thus, in those regulatory 
applications where offsite property consequences could result, these 
consequences would have to be calculated separately, and incorporated 
into the overall value-impact assessment.
    The net effect of this revised conversion factor policy on the 
bottom-line value-impact results is mixed. In most regulatory 
applications the only consequence of radiological exposure is health 
effects. As a result, the dollar valuation of a person-rem would shift 
from an undiscounted $1000 to a $2000 conversion factor which would be 
subject to present worth calculations. In these circumstances, the 
doubling of the conversion factor and discounting tend to cancel each 
other. The differential in total dollar valuation is not of major 
significance and no improvement or change in regulatory decisions is 
expected. However, there are select circumstances where improvements in 
regulatory decisionmaking are possible. In regulatory applications 
involving certain severe power reactor accidents, offsite property 
consequences are an expected outcome. Under the new policy, an 
additional dollar allowance would need to be included, and in these 
instances the change in total dollar value could be important to the 
regulatory decision.
    The new conversion factor policy has been incorporated in this 
final version of the Guidelines without the opportunity for public 
comment. This position was adopted because the NRC was interested in 
avoiding further delay in publication of the Guidelines so that 
analysts will have the benefit of other areas of improved guidance. 
Furthermore, in most regulatory 

[[Page 65695]]
applications this policy shift will have no meaningful effect on 
bottom-line cost-benefit results. In addition, given that this policy 
will be included in regulatory analyses for specific rulemakings, the 
opportunity to comment on it also exists within the context of 
individual regulatory initiatives. Finally, these Guidelines are not 
regulations and are not legally binding on anyone and are merely 
intended to inform the analyst as to expected staff practice.
    A more complete discussion of the basis and implications of the new 
person-rem conversion factor are provided in NUREG 1530, ``Reassessment 
of NRC's Dollar Per Person-Rem Conversion Factor Policy'' (to be 
published in late 1995). Members of the public who may wish to comment 
on this issue are encouraged to do so, and, on the basis of these 
comments, the NRC holds open the possibility of revising this policy in 
the future.
    Copies of NUREG/BR-0058, Revision 2, as well as NUREG-1530 may be 
purchased from the Superintendent of Documents, U.S. Government 
Printing Office, P.O. Box 37082, Washington, DC 20402-9328. Copies are 
also available from the National Technical Information Service, 5285 
Port Royal Road, Springfield, VA 22161. A copy is also available for 
inspection and/or copying for a fee in the NRC Public Document Room, 
2120 L Street, NW. (Lower Level), Washington, DC 20555-0001.
    Mail comments to: Chief, Rules Review and Directives Branch, 
Division of Freedom of Information and Publication Services, Mail Stop 
T-6 D59, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. 
Comments may be hand-delivered to 11545 Rockville Pike, Rockville, 
Maryland, between 7:45 a.m. and 4:15 p.m. on Federal workdays.

    Dated at Rockville, Maryland, this 11th day of December, 1995.

    For the Nuclear Regulatory Commission.
John C. Hoyle,
Secretary of the Commission.
[FR Doc. 95-30888 Filed 12-19-95; 8:45 am]
BILLING CODE 7590-01-P