[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]
-----------------------------------------------------------------------
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 10-4 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 10-4 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
