Environmental Risk Evaluation Act of 1995

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Environmental Risk Evaluation Act of 
1995''.

SEC. 2. FINDINGS AND POLICY.

    (a) Definitions.--As used in this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Adverse effect on human health.--The term ``adverse 
        effect on human health'' includes any increase in the rate of 
        death or serious illness, including disease, cancer, birth 
        defects, reproductive dysfunction,developmental effects 
        (including effects on the endocrine and nervous systems), and 
        other impairments in bodily functions.
            (3) Risk.--The term ``risk'' means the likelihood of an 
        occurrence of an adverse effect on human health, the 
        environment, or public welfare.
            (4) Source of pollution.--The term ``source of pollution'' 
        means a category or class of facilities or activities that 
        alter the chemical, physical, or biological character of the 
        natural environment.
    (b) Findings.--Congress finds that--
            (1) cost-benefit analysis and risk assessment are useful 
        but imperfect tools that serve to enhance the information 
        available in developing environmental regulations and programs;
            (2) cost-benefit analysis and risk assessment can also 
        serve as useful tools in setting priorities and evaluating the 
        success of environmental protection programs;
            (3) cost and risk are not the only factors that need to be 
        considered in evaluating environmental programs as other 
        factors, including values and equity, must also be considered;
            (4) current methods for valuing ecological resources and 
        assessing intergenerational effects of sources of pollution 
        need further development before integrated rankings of sources 
        of pollution based on the factors referred to in paragraph (3) 
        can be used with high levels of confidence;
            (5) methods to assess and describe the risks of adverse 
        human health effects, other than cancer, need further 
        development before integrated rankings of sources of pollution 
        based on the risk to human health can be used with high levels 
        of confidence;
            (6) periodic reports by the Administrator on the costs and 
        benefits of regulations promulgated under Federal environmental 
        laws, and other Federal actions with impacts on human health, 
        the environment, or public welfare, will provide Congress and 
        the general public with a better understanding of--
                    (A) national environmental priorities; and
                    (B) expenditures being made to achieve reductions 
                in risk to human health, the environment, and public 
                welfare; and
            (7) periodic reports by the Administrator on the costs and 
        benefits of environmental regulations will also--
                    (A) provide Congress and the general public with a 
                better understanding of the strengths, weaknesses, and 
                uncertainties of cost-benefit analysis and risk 
                assessment and the research needed to reduce major 
                uncertainties; and
                    (B) assist Congress and the general public in 
                evaluating environmental protection regulations and 
                programs, and other Federal actions with impacts on 
                human health, the environment, or public welfare, to 
                determine the extent to which the regulations, 
                programs, and actions adequately and fairly protect 
                affected segments of society.
    (c) Report on Environmental Priorities, Costs, and Benefits.--
            (1) Ranking.--
                    (A) In general.--The Administrator shall identify 
                and, taking into account available data, to the extent 
                practicable, rank sources of pollution with respect to 
                the relative degree of risk of adverse effects on human 
                health, the environment, and public welfare.
                    (B) Method of ranking.--In carrying out the 
                rankings under subparagraph (A), the Administrator 
                shall--
                            (i) rank the sources of pollution 
                        considering the extent and duration of the 
                        risk; and
                            (ii) take into account broad societal 
                        values, including the role of natural resources 
                        in sustaining economic activity into the 
                        future.
            (2) Evaluation of regulatory and other costs.--In addition 
        to carrying out the rankings under paragraph (1), the 
        Administrator shall evaluate--
                    (A) the private and public costs associated with 
                each source of pollution and the costs and benefits of 
                complying with regulations designed to protect against 
                risks associated with the sources of pollution; and
                    (B) the private and public costs and benefits 
                associated with other Federal actions with impacts on 
                human health, the environment, or public welfare, 
                including direct development projects, grant and loan 
                programs to support infrastructure construction and 
                repair, and permits, licenses, and leases to use 
                natural resources or to release pollution to the 
                environment, and other similar actions.
            (3) Risk reduction opportunities.--In assessing risks, 
        costs, and benefits as provided in paragraphs (1) and (2), the 
        Administrator shall also identify reasonable opportunities to 
        achieve significant risk reduction through modifications in 
        environmental regulations and programs and other Federal 
        actions with impacts on human health, the environment, or 
        public welfare.
            (4) Uncertainties.--In evaluating the risks referred to in 
        paragraphs (1) and (2), the Administrator shall--
                    (A) identify the major uncertainties associated 
                with the risks;
                    (B) explain the meaning of the uncertainties in 
                terms of interpreting the ranking and evaluation; and
                    (C) determine--
                            (i) the type and nature of research that 
                        would likely reduce the uncertainties; and
                            (ii) the cost of conducting the research.
            (5) Consideration of benefits.--In carrying out this 
        section, the Administrator shall consider and, to the extent 
        practicable, estimate the monetary value, and such other values 
        as the Administrator determines to be appropriate, of the 
        benefits associated with reducing risk to human health and the 
        environment, including--
                    (A) avoiding premature mortality;
                    (B) avoiding cancer and noncancer diseases that 
                reduce the quality of life;
                    (C) preserving biological diversity and the 
                sustainability of ecological resources;
                    (D) maintaining an aesthetically pleasing 
                environment;
                    (E) valuing services performed by ecosystems (such 
                as flood mitigation, provision of food or material, or 
                regulating the chemistry of the air or water) that, if 
                lost or degraded, would have to be replaced by 
                technology;
                    (F) avoiding other risks identified by the 
                Administrator; and
                    (G) considering the benefits even if it is not 
                possible to estimate the monetary value of the benefits 
                in exact terms.
            (6) Reports.--
                    (A) Preliminary report.--Not later than 1 year 
                after the date of enactment of this Act, the 
                Administrator shall report to Congress on the sources 
                of pollution and other Federal actions that the 
                Administrator will address, and the approaches and 
                methodology the Administrator will use, in carrying out 
                the rankings and evaluations under this section. The 
                report shall also include an evaluation by the 
                Administrator of the need for the development of 
                methodologies to carry out the ranking.
                    (B) Periodic report.--
                            (i) In general.--On completion of the 
                        ranking and evaluations conducted by the 
                        Administrator under this section, but not later 
                        than 3 years after the date of enactment of 
                        this Act, and every 3 years thereafter, the 
                        Administrator shall report the findings of the 
                        rankings and evaluations to Congress and make 
                        the report available to the general public.
                            (ii) Evaluation of risks.--Each periodic 
                        report prepared pursuant to this subparagraph 
                        shall, to the extent practicable, evaluate risk 
                        management decisions under Federal 
                        environmental laws, including title XIV of the 
                        Public Health Service Act (commonly known as 
                        the ``Safe Drinking Water Act'') (42 U.S.C. 
                        300f et seq.), that present inherent and 
                        unavoidable choices between competing risks, 
                        including risks of controlling microbial versus 
                        disinfection contaminants in drinking water. 
                        Each periodic report shall address the policy 
                        of the Administrator concerning the most 
                        appropriate methods of weighing and analyzing 
                        the risks, and shall incorporate information 
                        concerning--
                                    (I) the severity and certainty of 
                                any adverse effect on human health, the 
                                environment, or public welfare;
                                    (II) whether the effect is 
                                immediate or delayed;
                                    (III) whether the burden associated 
                                with the adverse effect is borne 
                                disproportionately by a segment of the 
                                general population or spread evenly 
                                across the general population; and
                                    (IV) whether a threatened adverse 
                                effect can be eliminated or remedied by 
                                the use of an alternative technology or 
                                a protection mechanism.
    (d) Implementation.--In carrying out this section, the 
Administrator shall--
            (1) consult with the appropriate officials of other Federal 
        agencies and State and local governments, members of the 
        academic community, representatives of regulated businesses and 
        industry, representatives of citizen groups, and other 
        knowledgeable individuals to develop, evaluate, and interpret 
        scientific and economic information;
            (2) make available to the general public the information on 
        which rankings and evaluations under this section are based; 
        and
            (3) establish methods for determining costs and benefits of 
        environmental regulations and other Federal actions, including 
        the valuation of natural resources and intergenerational costs 
        and benefits, by rule after notice and opportunity for public 
        comment.
    (e) Review by the Science Advisory Board.--Before the Administrator 
submits a report prepared under this section to Congress, the Science 
Advisory Board, established by section 8 of the Environmental Research, 
Development, and Demonstration Act of 1978 (42 U.S.C. 4365), shall 
conduct a technical review of the report in a public session.

Summary: Environmental Risk Evaluation Act of 1995 - Directs the Administrator of the Environmental Protection Agency to:  (1) rank sources of pollution with respect to the relative degree of risk of adverse effects on human health, the environment, and public welfare; (2) evaluate the private and public costs associated with each pollution source and the costs and benefits of complying with regulations designed to protect against risks associated with such pollution; and (3) evaluate the public and private costs and benefits associated with other Federal actions with impacts on human health, the environment, or public welfare. 
Requires the Administrator to identify opportunities to achieve risk reduction through modifications in environmental regulations and programs and other Federal actions with impacts on health, the environment, or public welfare. 
Directs the Administrator to:  (1) identify the major uncertainties associated with the risks and explain the meaning of the uncertainties in terms of interpreting the ranking and evaluation; and (2) determine the type and nature of research that would likely reduce such uncertainties and the cost of conducting such research.  Requires the Administrator to consider and estimate the monetary and other values of the benefits associated with reducing risk to health and the environment. 
Establishes triennial reporting requirements with respect to rankings and evaluations and requires such reports to evaluate risk management decisions under Federal environmental laws that present inherent and unavoidable choices between competing risks.  Provides for review of reports by the Science Advisory Board prior to submission.